FREQUENTLY ASKED QUESTIONS
Why invest in movies referred by UK Film Investment?
This website was launched with the specific purpose of being the bridge between an investor and a film production executive, to finance and produce british Motion Pictures.
The goal is to encourage investment in the burgeoning UK Film industry by means of public offering of shares under the Government's ENTERPRISE INVESTMENT SCHEME (EIS).
The scheme's range of major tax reliefs often act as the initial attraction for potential investors but there are huge additional benefits for those investing into films.
What tax reliefs are available through the EIS scheme?
There are several types of tax relief available:
a. Income Tax Relief
b. Capital Gains Tax Exemption
c. Capital Gains Tax Deferral
d. Loss Relief
e. Inheritance Tax Relief
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Can I invest as an overseas investor?
Yes, but the various EIS tax reliefs may not be available. Please contact Carnaby for more information on 0870 458 6281.
How do I obtain the tax relief?
In the first few months after subscribing for your EIS shares you will be sent a tax certificate. This needs to be sent to your tax office. If you receive it after the end of the tax year then send it with your tax return.
How much tax can I save or defer when I invest?
Eligible investors may therefore be able to combine the above reliefs so as to achieve initial offset of 60p in the £1.
Examples (ii) and (iii) are calculated on the assumption that you would otherwise pay tax at 40% on the chargeable gain.
How much can I benefit from this relief?
Is there any limit on the value of EIS shares I can buy in any one tax year?
Yes. The new annual limit (as of April 2004) is £200,000 per individualin each tax year. As a couple the limit is therefore £400,000 (However,there is no such limit on CGT Deferral Relief).
What would happen if I were to sell my shares after 3 years at a profit?
You will not have to pay tax at all on any profits made from the sale of your Shares if you sell them after three years.
What would happen if I were to actually lose money after 3 years?
EIS Loss relief effectively limits the downside to 48% of the original investment. (Calculation assumes higher rate of tax)
Where can I get advice?
EIS Investment is a specialised area of UK taxation and you shouldobtain the correct advice. You should contact an Accountant orIndependent Financial Adviser who is experienced in this field. Clickon this link to find an IFA near to you www.ukifadirectory.co.uk
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