Hey Guys,

I'll try and keep to the point as this could very easily get complex!

Basically I'm trying to get a film financed. The long and short of it is that we need approximately £360k of cash financing (some of the financing is being provided through in kind/soft money). We're intending that the money comes from private sources, so naturally we're looking at the best way to structure the financing.

First off I'll say that we're getting proper legal/accounting advice on all this, but our meetings aren't for several weeks yet, and I wanted to get as much personal groundwork done as possible, so I thought asking advice/opinions about one particular subject would be useful.

Basically, the most common forms of investing in film these days are through either an EIS or an investor LLP. Both offer benefits and disadvantages from a tax and regulatory point of view. The biggest problem with an LLP is that it doesn't offer a huge amount of overall tax benefits (thought it can offer Sideways Loss Relief), and the biggest problem with an EIS is whilst the tax benefits are good, the rigidity of the scheme combined with difficult exit options makes it a more difficult investment to structure (it comes down to the fact that realising the value of shares in a Film Company/Film SPV is difficult, especially because a predetermined exit option goes against EIS rules).

I have, however, heard of a system whereby investors can enter into an LLP through a Ltd. Company, thereby getting some benefits of the EIS (most notably the initial 20% tax relief on investment). This would naturally be a great way for us to structure the investment if it is both possible and, in the long term, not too difficult or problematic.

I'm just wondering if anybody has any thoughts/experience in this area, either as part of film investment or just the general EIS/LLP structures and if/how they may be combined? The more groundwork I can lay the better I can develop my initial Business Plan for our meeting with accountants/lawyers, thus maximising our benefit from them and also making sure I understand what they're on about!

I look forward to any thoughts/experiences with any or all of these issues.

Thanks.

Hi, I want to do this myself. Did you have any success in the meeting please?

Off the top of my head, maybe it would be possible to obtain a larger budget if two companies were involved in a project, although I do have a script in mind.

We could discuss it off-forum if you like.

Cheers,

Bumblebeesarego

I do have quite a lot of experience investing in EIS schemes, however, I don't know whether there might be a better alternative for you. The VCT (Venture Capital Trust) rules changed recently. This means that the VCT funds have to invest in something sharpish or they have to give the money back.

I am not an expert on this area and it ios quite possible that I am full of it!Brian maybe able to fill you in better. I would imagine that a VCT under pressure to invest would at least hear a pitch.