Industry boosted by scheme
Scots film gains from ‘golden egg’ tax relief
Films such as Hector, starring Peter Mullan, have been taken advantage of the Seed Enterprise Investment Scheme (SEIS) and its sister scheme the Enterprise Investment Scheme (EIS) which offers tax relief to those who invest in companies approved by HMRC.
On the eve of the Scottish Baftas, Simon Mallinson, producer of the film and managing director of Scottish production company MTP, described SEIS as the “golden egg” of tax relief.
He said: “This scheme has given not only Scotland but the UK’s film industry a wonderful boost.
“This weekend we will attend the Scottish Baftas where Hector is up for an award. This is a very successful film made in Glasgow and London which was largely reliant on SEIS and EIS funding.
“Expansion of this scheme will hugely benefit the country’s talented film making community and see exciting projects that may have otherwise struggled to get off the ground come to fruition.”
Investment in the film industry has come under scrutiny in recent months after several high profile footballers were implicated in setting up Limited Liability Partnerships relating to film production as a way of avoiding tax.
The benefit of the SEIS and EIS schemes is that investors have complete peace of mind that the projects they are investing in are pre-approved by HMRC.
The schemes introduced in 2012 were designed to boost economic growth in the UK by promoting new enterprise and entrepreneurship across a range of industries.
Mr Mallinson added: “Investors receive up to 50% Income tax relief and 28% CGT relief through this scheme. What’s more, if the project was to fail and they do not manage to recoup their initial investment, they can claim further loss relief that will cover off more of the initial investment that hasn’t been recovered by income tax or capital gains tax.”
MTP’s projects include the Irn-Bru “Fanny” and “ram-raiding granny” adverts, the Sony Bravia ads which famously saw paint exploding over Glasgow tower blocks, the Bet365 ads starring Ray Winstone and the current RBS television ad which charts the journey of a £10 note.