Type: Enterprise investment scheme
Minimum investment: Lump sum £5,000
Closing date: September 14, 2007
Commission: Subject to negotiation
This is an enterprise investment scheme providing investors with capital growth by investing in a film production of a psychological thriller.
Bankhall managing director Chris Burgess says: “Most clients who have previously invested in film have usually utilised the complex tax loss arrangements through an LLP, and continue to do so. However, these schemes are now coming to an end.”
He says Splintered offers the investor a direct investment with tax relief available under enterprise investment schemes, while internally the company is benefiting from the new film producers tax credit.
“The product carries no explicit charge and is aimed at the sophisticated/high net worth investor. Because it is a low budget production, there will be a certain cache for investors who will feel part of the an exciting new film, due for release in 2008.”
Looking at the down sides, Burgess says: “The product clearly isn’t for everyone and therefore will have limited appeal across the market.”
He thinks the main competition will come from other EIS propositions that are utilising the new film producers tax credit or can claim to have features beyond the standard structure.
Burgess concludes: “The benefit of this placing is its simplicity, with all net revenues from the exploitation of the film being directly for the benefit of the company and its shareholders. It offers investors a highly attractive deal with the fund aiming to raise £900,000.
Suitability to market: Average
Investment Strategy: Good
Advisor Remuneration: Average