Tax Credits & Reliefs >> Film Investment ReliefTags: tax refunds, tax deductions, investment tax relief
Who can claim?
Any person who makes investments in a qualifying film relief company during the period to 31st December 2012. It is proposed to extend the period of the relief to 31st December 2015.
Up to 2008
80% of payment subject to a maximum of 25,400 and a minimum of 250. In cash terms this is worth 10,414 for a 41% top rate tax payer.
For married couples both spouses are entitled to make a claim provided each has income in their own right to cover same. For the tax year 2008 a married couple could make a combined film investment of 63,500 provided each has sufficient income in their own right to offset against the cost of the investment.
From 2009 onwards
The annual ceiling for tax relief increases to 50,000 per annum and the 80% restriction is abolished.
This means a married couple could make a combine investment of 100,000 and receive tax relief of 41,000 provided each has sufficient income in their own right taxable at 41% to use up the film relief.
These schemes are usually promoted by financial institutions and investment brokers. The promoters usually provide an explanatory memorandum outlining the rules and regulations applicable to the scheme.
An attractive feature of this relief is that you must keep your investment for a minimum period of 1 year only.