These Film Investment Tax Break Schemes where created by Gordon Brown back in the 90s when he was Chancellor of the Exchequer to encourage development and investment into the British film industry.
They have been incredibly successful over the years for film companies and have created an excellent platform to limit an investors risk yet can create an unlimited uplift in returns.
Contact us today for our latest films that benefit from these schemes and ask for a brochure on how SEIS and EIS works
30 % Tax Relief for Current or Previous Tax year.
Pay No Inheritance Tax after 2 years.
Pay No Income Tax OR Capital Gains on any Profits.
Deference of any forms of Capital Gains for 3 years back to 1 year forward.
Receive Loss Relief on any monies lost at your current tax rate.
Investors must keep their shares for at least 3 years to benefit from EIS.
CGT deferral up to 28% of amount invested. Possibility to combine IHT with CGT Deferral & Income Tax Relief
CGT deferred will become payable at the rate in force at the time when the investment is realised or ceases to qualify, Investors may therefore be able to combine the above reliefs so as to achieve initial relief of 58p in the £1.
Examples (ii) and (iii) are calculated on the assumption that an Investor would otherwise pay tax at 28% on the chargeable gain which was the highest prevailing rate after 6 April 2010.
You will not have to pay any tax at all on any profits made from the sale of your shares (provided that the Company retains its EIS investment status) if you sell them after three years or if the Company is wound up and the assets distributed.
An individual need not be a UK resident but the EIS Relief is only available against UK taxable income. An individual must not be ‘connected’ with the Company at any time in the period beginning two years before the issue of the shares and ending immediately before the third anniversary of the issue date or, if relevant, the third anniversary of the date of commencement of the relevant qualifying business activity.
The main rules relating to “connection” with a company are that the individual and/or his or her associates must not:
Be an employee, partner or paid director of the Company or any subsidiary, or Directly or indirectly possess or be entitled to acquire more than 30 per cent of the issued ordinary share capital, the loan capital or the voting power of the Company or any subsidiary, or
Possess directly or indirectly such rights as would, in the event of the winding up of the Company or any subsidiary or in any other circumstances, entitle him to receive more than 30 per cent of the assets of the company or any subsidiary which would then be available for distribution to equity holders (shareholders and certain loan capital holders).
For this purpose an “associate” includes a husband or wife, civil partner, lineal ancestor or descendant and certain persons with whom the individual has a connection through a trust.
A director is not disqualified if he or she is reimbursed travelling and other expenses allowable for tax purposes but generally he or she must not be entitled to remuneration. In limited circumstances, directors previously unconnected with the company or its trade may qualify for relief provided that their remuneration is reasonable, or where non-managerial remuneration is received as trading income.