If you have a script and you're looking for a production company to help you get it off the ground please do get in touch. We may be able to offer you our services and gain the project an SEIS (Seed Enterprise Investment Scheme) or EIS (Enterprise Investment Scheme) approval which will give our investors a safer investing platform.
We work with professional film accountants and solicitors who can ensure all projects we work on can get SEIS or EIS advance assurance. So, what is SEIS & EIS?
The UK government set up the Enterprise Investment Scheme in 1994. Today, it offers a number of tax breaks to investors who buy shares in small, private companies:
To be eligible for these reliefs, you generally have to hold the shares for at least three years before selling them.
Seed Enterprise Investment Scheme (SEIS) tax breaks
The Seed Enterprise Investment Scheme is much newer than its parent initiative, EIS, having been set up as recently as 2012. It is very similar to EIS but designed for investing in even smaller companies, and providing even more generous tax breaks.
While the maximum workforce and gross assets allowable under EIS are 250 staff and £15 million respectively, SEIS has lower limits of 50 staff and £200,000 gross assets. Businesses must also be less than two years old (there are no age restrictions under EIS).
The tax breaks are as follows:
The tax reliefs available through SEIS are so generous that for the 2012/13 tax year, they added up to a potential 100.5 per cent of your investment in a situation where that investment was a complete failure. In other words, you literally could not lose provided you had paid enough tax to offset your SEIS investment against.
However, for the 2013/14 and 2014/15 tax years, the downside protection has fallen 86.5 per cent – so you’ll get back £8,650 from a £10,000 investment that totally fails if you pay enough tax to use all the reliefs. This is still an excellent buffer, of course.
The maximum you can invest through SEIS in any tax year is £100,000.