The MoneyLab Blog

SEIS/EIS for film - is it still possible?

Posted by Vasiliki Carson, Sapphire Capital on 21-Aug-2018 12:47:15


It is five months since the latest SEIS/EIS rules were enacted (see our prior blog “Autumn Statement 2017 – SEIS and EIS implications”), and we are now starting to understand the effect, particularly within the film and TV sector which appears to be significantly impacted.

 

The complexity related to EIS and film companies results from the new “Risk to Capital” condition enacted on the 15th of March 2018.  This condition, which gives more discretionary powers to HMRC was introduced to ensure the schemes support early-stage companies with the potential to grow in the long term. The change was required as certain companies used the schemes to create tax motivated, low-risk investment opportunities, referred to as “capital preservation investments” (e.g., using EIS monies to buy property from which the company traded).

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Topics: 2017 Autumn Statement, HMRC advance assurance, Film, Film SEIS