Benchmark Films 2 is launching later this year, investment professionals who wish to register to receive information on the opportunity can 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.

Initial Relief - 20% tax relief on amounts invested up to £500,000 per tax year. All or part of the amount invested can be carried back and applied against income in the previous tax year. An investment of £100,000 effectively costs £80,000 after the initial relief is claimed or set off against other income tax liabilities.

Capital Gains Tax (CGT) Deferral - unlimited relief worth up to 28% of the investment on gains arising in the three years prior to or year following investment, so previous CGT liability can be reclaimed or deferred. Combined with the initial tax relief this reduces the actual cost of investment into an EIS by up to 48%, so a £100,000 investment costs just £52,000.

Inheritance Tax Relief - 100% after holding the EIS shares for two years.

Loss Relief - net of the initial tax relief taken, loss relief is available at the investors marginal higher tax rate, up to a maximum of 50% of the investment. In a worst case scenario the basic EIS mitigates risk by combining the initial tax relief and the loss relief to limit the downside to 40% of the amount invested.

Tax Free Realisation - profits returned as capital are exempt from CGT, so can be grossed up at the higher tax rate for comparison to other investments.

If an EIS investment breaks even after three years, then allowing for the initial 20% tax relief the net return is almost 8% per annum. Due to this return being tax free, it is the equivalent of a gross return of over 15% per annum at the new higher tax rate. If the return on investment is 30% after corporation tax, then the EIS relief results in an effective gross return of over 35% per annum.

Link to HMR&C EIS page

Self 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 or taxation advice, and prospective investors should consult an authorised person specialising in advising on investments and tax who is able to take account of an individual's personal circumstances.