New Investment Opportunities
Benchmark Films, a new EIS/ SIPP investment opportunity has just been launched. Investment professionals can register to receive information on the opportunity - please call 020 3039 3459 or contact us by email.
Tax Relief Summary
Enterprise Investment Scheme (EIS) - offering qualifying investors tax relief on amounts invested up to £500,000 per tax year. Unlike other film based tax schemes each individual EIS company has advance approval from HM Revenue & Customs. The EIS company must operate within the EIS rules for at least three years, which fits into the time frame needed to produce and market a film and collect film revenues.
20% initial
tax relief on amounts invested capital
gains tax (CGT) deferral relief worth up to 40% of the investment on gains
arising in the three years prior to or year following investment, so previous
CGT can be reclaimed or deferred. CGT from prior to
6 April 2008 that was taxed at 24% to 40% can be reclaimed through the EIS
and will be repayable at the prevailing CGT rate on exit, currently a 6%
to 22% saving in tax with the new 18% CGT rate. Combined with the initial
20% tax relief this reduces the cost of investment into an EIS by up to
42% 100%
inheritance tax relief after holing the EIS for two years loss
relief worth up to 40% of the amount invested net of the initial tax relief
taken, worth a maximum of 32% of investments. In a worst case scenario the
EIS mitigates risk by combining the initial tax relief and the loss relief
to limit the downside to 48% of the amount invested, or 26% where a 40%
CGT liability has been deferred no tax
on profits returned as capital due to CGT exempt realisationSelf Invested Personal Pensions (SIPPs) - following the changes to pensions introduced in April 2006, unquoted shares qualify as a permitted investment for acquisition through a SIPP. By acquiring production company shares through a SIPP the net cost of the investment to an applicant paying tax at the higher rate is effectively 60 pence for each £1 invested. Additionally any return paid as either dividends or a realisation of capital will be returned to the SIPP without deduction of tax. foundation films has linked up with a leading SIPP provider able to facilitate investment where no SIPP is held or an investor's SIPP limits investment options.
The information provided on this site does not constitute investment advice, and prospective investors should consult an authorised person specialising in advising on investments and who is able to take account of an individual's personal circumstances.
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