Who can claim?
Any person who makes investments in a qualifying film relief company during the period to 31st December 2020.
Tax Relief Due
The annual ceiling for tax relief is €50,000 which is allowed at your top tax rate. if this is 41% the tax relief is worth €20,500.
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.
However form 2016 onwards it is proposed to change the tax relief to a tax credit basis which means tax relief will be allowed at 20% only and not at your highest tax rate.
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.
Up to 2008
The amount qualifying for tax relif was 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.