Film Scheme Tax Relief

G

gInvestor

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Hello. I'm relatively new to investments and wondered if anyone could give the pro's and con's on the Film Scheme Tax Relief. It seems to be fairly risk free which seems to be 'too good to be true' for a skeptic like myself. thanks for the help.
 
gInvestor said:
Hi Clubman, I suppose that's what I'm asking really. I have'nt been able to get anyone detailing the risks or cons of the scheme and hoped someone here may help. Thanks.
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no. he means your initial investment....
 
My understanding is that film investments would generally be considered a high risk investment option. Tax reliefs may not be of much use if there is a high risk of losing your money - just that you get more money (from the taxman) to lose along with your own. Maybe these Google search results are of some use...?
 
ClubMan said:
My understanding is that film investments would generally be considered a high risk investment option. Tax reliefs may not be of much use if there is a high risk of losing your money - just that you get more money (from the taxman) to lose along with your own. Maybe these Google search results are of some use...?
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Cheers Clubman. did the searches in the past but canont find any general posted information as I would get here. everything seems to be advertising for the scheme or companies offering services around the scheme. It would be great to get some independent advise.
 
The risk in film relief is that the film is not produced in accordance with revenue rules and you lose the relief. This can be negated by making sure the film you invest in is made by a production company with a history of completing section 481 films. Also look for one that is presold. I have done several over the last few years and the company I dealt with have completed 39 of these to date with no issues for the investor.

To my mind they are as close to a 'no brainer' as it gets. No cash outlay is needed and at the minimum entry level a return of circa €850 is achieved with up to €3500 for those with more income to shelter. Minimum amount of income you need to be paying higher rate tax on is €12,500 up to max of €50,000.



One of the few reliefs the govt has committed to going forward
 
How is no cash outlay required? Is this a leveraged investment which would presumably compound the risks/potential losses?
 
ClubMan said:
How is no cash outlay required? Is this a leveraged investment which would presumably compound the risks/potential losses?
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There is no cash outlay from your pocket. Permanent TSB do pre approved finance for investors. There is no underwriting and you do not have to make monthly repayments. That is the confidence they have in the scheme.

Last year after I invested I got my film relief certificate within 2 months. This was sent to revenue and my tax credits were readjusted and I got a refund of 10k in my December wages. I then paid off the loan portion from PTSB and made a net profit of €1700
 
Thanks. Do you have any link to PTSB info about this? I can't find anything offhand...
 
T McGibney said:
I always worry when an investment is described as a 'no brainer'. Many of the financial disasters of the past decade were labelled as 'no brainers'
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Can only give you my thoughts on what has been successful for me for the last 4 years. If you go into the right film with the right company the risk really are minimal. Last years film had Martin Sheen in it and this year Pat Short is starring. The success of the film has no bearing on your tax relief and return, as long as its made and handed over you get the relief
 
I did these in the past when a completion bond was being provided. As this is no longer market practice, I stopped doing them as the risk of losing the equity and in particular paying the loan built into the structure wouldn't justify the return for me.
 
ClubMan said:
Fair enough - just thought you might if you had been investing in this area for the last four years...
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I can pull an old file if you are keen to see one. Basically a standard loan agreement. PM me an email and I'll scan one in
 
Cheers for all the detail.

Bigbustour, could you PM the details of who/which company you have been dealing with ? Thanks..
 
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