Investing in film sales agents with HMRC Advance Assurance of EIS qualification
Investors can invest in EIS shares before the end of this tax year
Investment manager Oxford Capital has launched a new EIS, investing in the UK creative sector. The Oxford Capital Media EIS aims to achieve a tax-free return of up to 120% after four years, plus income tax relief of 30% of the amount invested.
Initially, the EIS will invest in companies that trade as sales agents for independent film and television productions. Oxford Capital has already identified two such companies, both of which have recently obtained Advance Assurance of EIS qualification from HMRC. This gives the Media EIS an initial capacity of £10m.
“We are delighted to be launching our new Media EIS. The creative industries are vital to the UK both commercially and culturally, and film and television also benefit considerably from government support,” said David Mott, Managing Partner.
“We’ve known for a long time that the sector was a good match with our extensive EIS expertise, but we also only wanted to launch our Media EIS when we had lined up real investment opportunities with Advance Assurances in place. We’re excited that we are now open for subscriptions.”
The sales agent companies selected will diversify investor risk by working for a range of different productions, earning revenues from the sale of distribution rights.
Using this model, the companies will often be able to make a profitable return even from productions that underperform, as well as enjoying increased returns from films that are commercially successful. This gives the Oxford Capital offer a distinct risk profile when compared to other film EIS offers, many of which are reliant on box office success to generate positive returns for investors.
Both companies are run by an established and respected film sales agent, who will operate with the support of a team of highly experienced media experts, coordinated by Oxford Capital.
Oxford Capital is confident that media is a space with longevity and depth of opportunity for its investors. David Mott added, “We are laying the groundwork for future tranches of the Media EIS, which could invest in music, audio production, games development, live performances or other creative trades.”
The Oxford Capital Media EIS will hold its first investment close before the end of this tax year, allowing participating investors to carry back the EIS income tax relief to the 15/16 tax year. Subject to capacity, the current £10m will remain open in the new tax year, with share purchases taking place roughly once per month.