Film scheme v. BES scheme for private investor

[vortex]

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.

 

[Mini3277]

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.

 

[Mark_Mc]

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.

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.

 

[Graham_07]

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.

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.

 

[Mini3277]

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.

 

[Mark_Mc]

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!!

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.

 

[vortex]

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.