Investors

Investing

No other industry offers the same excitement and glamour to investors as the film industry.

Where else can you walk the red carpet, meet the stars, visit film sets and even appear on film and still potentially make huge profits?

This is due to the generous tax reliefs the UK Government offer, including the Seed Enterprise Investment Scheme (SEIS), the Enterprise Investment Scheme (EIS) and the Film Tax Credit (FTC), all of which work to de-risk your investment.

In certain, circumstances, where films can make a loss,  investors could still make a small profit from their investment*- When the films make a profit this can be distributed to investors TAX-FREE. So there’s never been a better time to invest in British films.

Title Budget Worldwide Gross Profit
Paranormal Activity $15,000 $107,918,810655,505%
Open Water $150,000 $52,000,00034,667%
Super Size $200,000 $29,500,00014,750%
Once $150,000 $19,000,000 12,667%
Napoleon Dynamite $400,000 $46,000,00011,500%
My Big Fat Greek Wedding $5,000,000 $368,000,0007,360%
Slumdog Millionaire $15,000,000 $141,320,000943%

Financial benefits of investing

GlobalWatch is using the SEIS to raise money for the budget for each of its feature films from investors. The SEIS is the most generous of all the tax relief schemes run by the UK Government and provided investors are UK taxpayers they could benefit from lucrative tax benefits including:

  • 50% return on their investment within the first year GUARANTEED (direct from HMRC via the SEIS Income Tax relief, giving a rebate against an investor’s Income Tax bill for either the current or previous tax year worth up to 50% of their investment, irrespective of their Income Tax rate)
  • One-off, time-limited 100% Capital Gains tax write-off on other investments if you reinvest those gains in SEIS investments before 5 May 2019 via SEIS Capital Gains Tax Reinvestment relief
  • No Capital Gains tax payable on any future profits via SEIS Disposal relief
  • And if the worst happens and the film fails to recoup any of its costs, SEIS Loss relief minimizing your losses to a maximum of 27.5% (for 45% taxpayers not claiming Capital Gains Tax Reinvestment relief) or even a small profit of 0.5% (for 45% taxpayers claiming 28% Capital Gains Tax Reinvestment relief)*

*Calculations above based on UK Income Taxpayer paying 45% Income Tax rate with Capital Gains Tax due on other investment reinvesting their gain in an SEIS company, carrying back full SEIS Income Tax relief and Capital Gains Tax Reinvestment relief upon investment to the previous 2017/18 tax year and claiming full SEIS Loss relief in the event of a total failure of the film.

Other great benefits

But investing in film is not just about the financial benefits, great as they are – investors in GlobalWatch film projects will be eligible for a range of other exclusive opportunities:

  • Getting involved as an extra on camera or behind the scenes
  • Visit the set for VIP days
  • Invitations to exclusive Pre-Production and Wrap parties, mingle out with the stars of the film
  • A personalized credit on the titles of the film as well as your own entry on the Internet Movie Database (www.IMdB.com)
  • Exclusive memorabilia from filming
  • First, peek at the final cut of the film at test screenings
  • Personal invitations for you and your family to the red carpet Premiere and After Party
  • Executive Producer credits for the larger investor on the titles of the film and poster, along with real script input and a special cameo role for you or a family member