Boylan & Dodd Tax Breaks - Films



Budget 2006: This relief was one of the few tax based investments not specifically mentioned in Budget 2006.

In the budget for 2004, it was announced that the relief is to be made available until 31 December 2008. The limit per film has also been raised (See below). NB** These changes are, however, subject to EU Commission approval.

Until then, tax relief is available to both individuals and companies, as follows:-

Individuals Tax Relief
  • 80% of an individuals' investment can be claimed against income per individual per tax year up to a maximum of €31,750/£25,000
  • So for the year 2004, an individual can get €10,668 worth of tax relief
    - €31,750 x 42% x 80% = €10,668
  • Unutilised film investment can be carried forward
  • You are allowed to deduct the cost of the investment from the sale proceeds of your shares in the film company in arriving at any capital gains tax computation
Companies Tax Relief
  • Budget 2004 has raised the cap on the maximum amount of funding eligible for tax relief in respect of any one film to €15million (was €10.48million).
  • where over €3.8m/£3m is invested in a film, the excess can only be claimed if the film budget is €5m/£4m or less
  • Only 80% of the amount invested can be claimed, subject to the limits in the above point.
  • investments can be made by a single company or a group
  • You are allowed to deduct the cost of the investment from the sale proceeds of the shares in the film company in arriving at any capital gains tax computation

Now let's have a look at some of the conditions of the relief:-

Qualifying Films
  • to qualify, a film must receive a certificate from the Minister for Arts, Heritage, Gaeltacht and the Islands
  • A certificate will not be issued if filming has already commenced
  • A separate Irish incorporated company must be established to produce each single film

Qualifying Individuals and Companies
  • must not be connected with the film company ie. have control of the film company. Note that your investment in the film company is in the form of shares; you must therefore not hold a controlling interest to avail of the relief.
Filming
  • 75% of filming must take place in the Republic of Ireland unless the Minister states otherwise.
Maximum Financing
The maximum amounts which can be raised are:-
Film Budget % of Cost Allowable
€5m/IR£4m or less up to 60%
€5m - €19m (IR£4M - IR£15M) up to 50%
€19m (IR£15m) + Maximum of €9.5m/IR£7.5m

In the December 1999 budget, the Minister announced that limits will no longer be increased by 10% if post-production work is carried out in the Republic.

The Role of Boylan & Dodd
How will we help you utilise this relief? We will:-
  • Find the right film for you as an individual or corporate investor.
  • For film makers, we can ensure your film successfully applies for it's certificate.
  • We will also help you find investors for your films.
Please EMail us by clicking here.