An overview of recent HMRC rule changes for film and television companies
HMRC have been paying particular attention to film and television production companies looking to apply for SEIS and EIS.
Basically, SEIS/EIS is designed for growth companies creating a scalable business and where there's a 'risk to capital' (as HMRC define that) rather than e.g. financing a single film.
In most cases it's pretty clear that you're either a film production company that won't be able to claim SEIS/EIS, or a company that's not at all affected by this.
But, in other cases it's more subtle - e.g. what if you're a games studio or film production studio creating a tech platform, business or backend technology provider that will power multiple productions?
One of our customers put together this handy set of resources that may help you understand what will and won't be possible if you're in this not-sure zone, and also how to frame your product offering and services in order to be able to qualify.
HMRC SEIS/EIS rules changes for Film and Television
Risk to Capital Condition - Factors to be considered
An overview of risk to capital
UK Gov Venture capital Schemes Manual example 3, a film company
EIS GOV application information
An interpretation by Sapphire Capital partners of the new rules
The Rules Changes
This article pre- the EIS rules changes might be useful to read as background and lists the main players, Ingenious etc
This pre-rules change investment sector overview by Allenbridge has some useful info on what to present for investors, including an overview of how film & TV sector works. Note some things have changed and some continue to change.
Good intro to film process from Motion Picture Capital