# Film scheme v. BES scheme for private investor



## vortex (18 Sep 2008)

I got some detail from on a Film Scheme. The projection chart is as follows:-


  Salary    Max Invest      Tax Relief             Equity                    Profit      
  45,000   12,000            3,936                    3,180                      756      
  50,000   18,250            5,986                    4,836                      1,150
  55,000   24,500            8,036                    6,493                      1,543
  62,000 +31,750            10,414                   8,414                      2,000      

It says profit  Euro 2000. But surely profit (by way of tax relief) should be  41% of 80% of the amount invested (equals E10414 for someone earning over 62K). Or what do the mean by profit in  the last column.

In general it would seem that if all you get back is 2000 that BES is the way to go since you can deduct the entire amount invested against your income. There is perhaps more risk but potentially more rewarding. 
Anyone got any answers to this or advice.


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## Mini3277 (18 Sep 2008)

Ok well lets say you're earning €100,000 at the marginal rate of 41%. 

So you go along had decide to invest in a Film Scheme. You put €31,750 in the Scheme, the investment is made up of two payments one for €8,000 and the other for €23,750 or something like that. Right, then after six months or so you get your Film 3 from the film company and you'll get a refund of €10,414 ((31,750*80%)*41%). So at this stage you've got cash out of €31,750 and cash in €10,414. Then after one year and one day from your initial investment you sell your shares in the film company for €23,750. Leaving you with €34,164 in and €31,750 out. With regard to the €8,000 part, you don't get that back so in theory your profit is around €2,000, my figures are a little off. 

BES is a different type of investment, while with Film Schemes there is a slight chance that you might lose your money it's extremely slim. With BES you've know guarantee that you'll make money on it at all. If you are thinking about BES go for something that is asset backed.


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## Mark_Mc (19 Sep 2008)

The figures are sparse to be honest to be giving a detailed assessment. I am curious though about who the poster immediately above me is because they seem to be making a very specific assessment of the figures. Is the poster connected with the promoters of the investment because it's very focussed to be saying 8,000 this and 23750 that etc etc.




vortex said:


> I got some detail from on a Film Scheme. The projection chart is as follows:-
> 
> 
> Salary Max Invest Tax Relief Equity Profit
> ...


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## Graham_07 (19 Sep 2008)

Mini3277 said:


> the investment is made up of two payments one for €8,000 and the other for €23,750 *or something like that*.. you don't get that back so in theory your profit is around €2,000, *my figures are a little off.*


 


Mark_Mc said:


> I am curious though about who the poster immediately above me is .... Is the poster connected with the promoters of the investment because it's very focussed to be saying 8,000 this and 23750 that etc etc.


 
They might clarify this themself but looks to me more like someone who has done it and is quoting from their experience. Especially with the "or something like that" comments.


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## Mini3277 (19 Sep 2008)

Graham_07 said:


> They might clarify this themself but looks to me more like someone who has done it and is quoting from their experience. Especially with the "or something like that" comments.



Yup Graham is right, I'm someone who has been investing in Film Schemes for the last few years. The reason I'm talking about the €8,000 and the €23,750 is because that's the way Anglo structure it. All my investments have been done through Anglo, I don't how any other Institutions structure them.

The majority of the work done behind Film Schemes is done by MOP's or PWC.


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## Mark_Mc (20 Sep 2008)

Fair enough. Might be worth being more open from the outset? 

Any idea why they structure it in 2 separate parts? Ever get an explanation? Perhaps worth sharing!!




Mini3277 said:


> Yup Graham is right, I'm someone who has been investing in Film Schemes for the last few years. The reason I'm talking about the €8,000 and the €23,750 is because that's the way Anglo structure it. All my investments have been done through Anglo, I don't how any other Institutions structure them.
> 
> The majority of the work done behind Film Schemes is done by MOP's or PWC.


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## vortex (22 Sep 2008)

Yes it was anglo figures I was going off. 
What I didnt understand (and what seems to be the reason that you dont get a full 80% tax relief) is that they return less to you then your actual investment meaning that the profit after getting your tax relief is about 2k. There is more money to be made on the BES but it is more risky as has been pointed out.


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