# Film Scheme Tax Relief



## gInvestor (15 Nov 2011)

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.


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## ClubMan (15 Nov 2011)

gInvestor said:


> It seems to be fairly risk free


Where/how did you get that impression!?!?


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## gInvestor (16 Nov 2011)

ClubMan said:


> Where/how did you get that impression!?!?



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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## askU (17 Nov 2011)

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.


 
no. he means your initial investment....


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## ClubMan (17 Nov 2011)

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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## gInvestor (17 Nov 2011)

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...?



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.


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## paddy26 (18 Nov 2011)

Hi,

This link may be helpful. 

[broken link removed]

Paddy


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## bigbustour (18 Nov 2011)

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


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## ClubMan (18 Nov 2011)

How is no cash outlay required? Is this a leveraged investment which would presumably compound the risks/potential losses?


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## bigbustour (18 Nov 2011)

ClubMan said:


> How is no cash outlay required? Is this a leveraged investment which would presumably compound the risks/potential losses?



 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


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## ClubMan (18 Nov 2011)

Thanks. Do you have any link to _PTSB _info about this? I can't find anything offhand...


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## T McGibney (18 Nov 2011)

bigbustour said:


> To my mind they are as close to a 'no brainer' as it gets.



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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## bigbustour (18 Nov 2011)

ClubMan said:


> Thanks. Do you have any link to _PTSB _info about this? I can't find anything offhand...



Sorry dont have any links or docs to hand


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## bigbustour (18 Nov 2011)

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'



 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


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## buyingabroad (18 Nov 2011)

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.


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## ClubMan (18 Nov 2011)

bigbustour said:


> Sorry dont have any links or docs to hand


Fair enough - just thought you might if you had been investing in this area for the last four years...


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## bigbustour (18 Nov 2011)

ClubMan said:


> Fair enough - just thought you might if you had been investing in this area for the last four years...



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


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## gInvestor (19 Nov 2011)

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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## bigbustour (23 Nov 2011)

Hi gInvestor, My adviser sources this for me from HBC


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