As well as being a fascinating industry in which to become involved, a number of tax advantages have been made available for both individual and institutional investors. As well as making full use of these advantages on behalf of our investors, Gizmo Films seeks to work closely to keep all investors fully informed of the progress of our projects. We seek to make films in a cost effective way without compromising on quality, and our extensive contacts in suppliers of complementary investment streams, production, marketing and distribution ensure that whilst producing films of outstanding quality and integrity we maximise the opportunity to make our projects profitable.
The Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme offers wide range of tax breaks to UK investors. The EIS and SEIS (see below) schemes are now the only UK tax efficient schemes to offer Capital Gains Tax Deferral. The scheme also offers income tax relief at 30%, capital gains free growth and, through Business Property Relief, relief from Inheritance Tax if the shares are held for more than two years. It is anticipated that companies formed to fund individual films would be likely to qualify for this scheme.
These reliefs significantly mitigate the risk of investment:
Loss Relief – If the investment does not succeed or the EIS shares are disposed of at a loss (after taking into account income tax relief), such loss can be set against the investor’s capital gains or taxable income in the year of disposal or the previous year.
Further information: www.hmrc.gov.uk/eis/
The Seed Enterprise Investment Scheme (SEIS)
This is a new (April 2012) scheme available for investments into start up businesses. It has been indicated to Gizmo Films Productions by HMRC that the Company qualifies for this scheme.
Further information: www.hmrc.gov.uk/seedeis/index.htm
Film Tax Relief
UK film production companies are able to take advantage of this unique relief, subject to a number of investment criteria.
For films with a total core expenditure of £20 million or less, the film production company can claim payable cash rebate of up to 25% of UK qualifying film production expenditure. For films with a core expenditure of more than £20 million, the film production company can claim a payable cash rebate of up to 20% of UK qualifying film production expenditure.
Whilst a UK ‘Cultural Test’ applies to productions, a number of international and bilateral treaties exist in relation to co-productions.
For further information: www.hmrc.gov.uk/films/
For further information on investing in Gizmo Films contact Peter Dunphy email@example.com
We strongly advise potential investors to seek individual specialist advice from their tax and financial advisers.