Innovative Media are pleased to be working with award winning editors and up and coming film makers to raise necessary funding for British talent and films.

Our innovative funding scheme uses a range of tax driven formats which ensures that we maintain maximum control over our projects and protect the interests of our Investors.

Using the industry-standard EIS (Enterprise Investment Scheme) Innovative Media raise the equity for the feature films by combining the EIS with regional finance together with the UK film tax credit http://www.hmrc.gov.uk/films/reforms.htm

We further protect our backer’s investments by keeping the budgets low, fiercely retaining our independence and building sustainable, creative relationships with some of the UK's finest talent.

The new film tax-relief system will make the UK an attractive place to make films - and will support a consistent flow of British movies and co-productions to worldwide audiences - and here's your opportunity to be involved.

By participating in the business of film you could achieve:

• An attractive share of income received from film revenues.
• Tax mitigation against trading risks

In the UK projects traditionally pre-sell rights internationally to form a percentage of the budget with the remainder coming from a broadcaster, independent financier, bank loan or similar facility. In exchange for this funding producers may sacrifice the rights to the film's exploitation around the world and any secondary markets such as download, VOD and DVD. In addition they are often asked to defer their fees.

Innovative Media employ an alternative model, which combines private equity, together with regional/state subsidised funding or other 'soft' money sources together with the UK film tax credit or similar tax credit systems in other countries. This method forms a much more efficient system of funding by retaining all the rights and thereby offering a far more exciting and potentially lucrative deal to the Investor.

EIS in more detail

Enterprise Investment Schemes are a relatively new type of investment introduced by the Government to encourage investment into smaller companies, who need additional finance, often for start up capital or to expand the business.

The reason behind this is that the companies are relatively small and are often start up companies. This means that frequently these investments are in a higher risk bracket than ordinary investments into equities.

To encourage investment into these companies, major tax incentives and benefits were introduced with the investments:

Capital Gains Deferral

Investors are able to defer unlimited capital gains made elsewhere by subscribing for shares in an EIS qualifying issue. Investment into the EIS must be made up to one year before or up to three years after the capital gain was made. The capital gain is 're-crystallised' on disposal of the investment or if the company ceases to be qualifying.

Income Tax Relief

Income Tax Relief is available at the rate of 20% on investments of up to £500,000 in the 2010/2011 tax year. This is up to a maximum of £100,000 income tax relief each tax year. It is important to note the following:

An investor cannot receive tax relief of more than they have paid in the relevant tax year. For three years from the purchase of the shares or commencement of trade, whichever is the latter, the shares must remain qualifying and be retained by the individual. If within three years the shares cease to be qualifying or the asset is disposed of wholly or in part, then the Income Tax Relief claimed must be paid back wholly or in part to HM Revenue £ Customs.

In the period from 6th April to 5th October, it is possible to treat up to 100% of each investment as being invested in the previous tax year. There is no limit on the amount which may be carried back, but the relief available in the earlier tax year will be subject to the overriding limit for relief for that year.

An individual does not need to be a UK resident, but must be a UK taxpayer. An individual cannot be connected with the company either as an employee, an existing paid director or a holder of more than 30% of the existing share capital or voting rights.

Capital Gains Tax Exemption

Any profits arising on disposal of EIS qualifying shares are exempt from Capital Gains Tax, provided the shares have been held by the individual and remained qualifying for the 3 year period since purchase or commencement of trade, whichever is the latter.

The limitations or conditions are broadly similar to the above conditions to qualify for Income Tax Relief.

Loss Relief

If EIS qualifying shares are sold at a loss then loss relief is available on the net loss at the investor’s marginal rate of tax. The net loss is the original sum invested less any initial Income Tax Relief claimed less the value received on disposal. Losses made by individuals can be offset against capital gains in the year of loss or a future year or against income in the year of the loss or the previous year. Trustees are only able to offset losses against capital gains.