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2.—(1) Schedule 1 to the Films Act 1985 shall be modified as follows.
(2) In sub-paragraph (1) omit the words from “but shall” to the end.
(3) After sub-paragraph (1), insert—
“(1A) The labour costs of a film shall not include payments in respect of copyright other than copyright in a work created for the purpose of use in the film.
(1B) The labour costs of a film shall not include payments which—
(a)are in respect of living expenses which a person incurs because it is not reasonably practicable for him to reside at his usual place of residence while directly engaged in the making of the film, and
(b)are reasonable in the opinion of the Secretary of State.”
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