HMRC have published a note to clarify the interaction of the enterprise investment scheme (EIS) and co-productions in film and television and, in particular, the eligibility of co-productions to access the EIS.
Each party in a co-production controls a part of the project and raises the necessary finance, with the majority producer responsible for collating the parts into a finished film or programme.
All parties, who usually share income in the same ratio as their input, jointly own intellectual property.
A client made payments into a seed enterprise investment scheme and an enterprise investment scheme in 2012/13 and 2013/14. No certificates were received in time for submission of the 2012/13 tax return
Harvey’s Jersey Cream Ltd (TC3045)
Enterprise investment scheme relief is important and valuable. The relief can be lost by the investing taxpayer if the recipient company does not “employ” the funds within the specified period of time