INVESTOR Content
Additional Information
AtoZ works in conjunction with a number of UK production companies to raise equity for film, TV programmes and film distribution. Our sole focus is on film and TV projects that have a commercial appeal, an identifiable audience, moderately low and controllable costs and a sound financial structure. An independent film with a smaller production budget doesn’t need to be a huge success at the box office in order for an investor to receive a return on their investment, that’s the benefit of investing in independent film.
AtoZ offer a number of tax efficient investment opportunities for our slate of productions. We also have opportunities for investing directly in projects that are at an advanced stage and are looking for the final amount of financing. Both cases have a return that can last a lifetime.
WHY INVEST IN FILM?
Investing in Film is one of the best investments you can make, the benefits stretch far beyond the sales of box office tickets. DVD/Blu-Ray sales, television airings, Video on Demand (VOD) subscriptions and the sale of merchandise all count towards the profit a film makes and can continue to generate a profit for a lifetime. Investing in film is a great way to see good returns.
As with any financial investment, there is always an element of risk and it is very important that you do not invest what you cannot afford to lose. While it is not possible to guarantee the commercial success of any film project, we want the best for our investors and select our projects with them in mind.
INVESTMENT BENEFITS
- The investor can have their name in the credits at the end of the film
- The chance to be involved with the production of the film
- The chance to meet the cast and crew backstage
- An invitation to attend red carpet events including the film premiere
- VIP opportunities to attend special events
- Sample merchandise
- Tax relief benefits (HMRC's Enterprise Investment Scheme).
It is important to note that the above benefits are subject to the particular film and the amount invested in the project.
EIS
The Enterprise Investment Scheme (EIS) is a government sponsored investment scheme, offering a range of tax relief benefits to investors who invest in smaller high-risk companies which are not listed on the stock exchange.
- 30% Income Tax Relief on the cost of the shares (available to individuals only who subscribe for shares in an EIS). Relief can be claimed up to a maximum of £1m invested, giving a maximum tax reduction/ repayment of £300k providing you have sufficient Income Tax liability. A 'carry back' can be applied to a preceding year.
The shares must be held for a certain period (minimum of 3 years) or Income Tax Relief will be withdrawn.
- Capital Gains Tax Deferral, available to individuals and trustees of certain funds. Tax on a capital gains can be deferred when invested in an EIS qualifying company. The gain can arise from the disposal of any kind of asset, but the investment must be made within the period one year before or three years after the gain arose. There are no minimum or maximum amounts for deferral. Unconnected investors may claim both Income Tax and capital gains deferral relief.
- Loss Relief. If the shares are disposed of at a loss, you can elect that the amount of the loss, less any Income Tax relief given, can be set against income of the year in which they were disposed of, or any income of the previous year, instead of being set off against any capital gains.
OUTLINE of how it works
THE INVESTMENT IN THE LIAR WORKS AS FOLLOWS:
Clients place their funds into the THE LIAR vehicle, filling out the required forms and money laundering checks, then once approved paying over to the escrow account.
You will either be
a) investing directly into the project and benefiting purely from the success of this film. The performance of past and future movies developed by us will not affect your investment.
b) If you invest in EIS (and their benefits) then you will be subscribing to Company shares which will go towards developing our slate, overheads and pre-production. You would then see a potential upside from a slate of 3 exciting films (including THE LIAR) as described in our brochure.
We will be bonded.
Shooting on THE LIAR is scheduled to begin in 2024. Shooting the movie will take seven weeks with an additional twelve weeks in picture post-production to our cut then fourteen weeks sound post, vfx and mix before delivering it to the studio to distribute in the UK and other territories.
Our A-list ensemble cast, quality collaborators, excellent material and major studio support gives us a great platform to be talked-about and to build excitement. We will launch at a major festival, guided by our sales agent.
THE LIAR will begin generating sales revenues once it has been released. Income will be generated from Cinema, Auxiliary (Airlines and Hotels), streaming, DVD and television.
Profits can be received for the life of the movie.
Collections Agent
An independent third party will collect all funds from the sale of the film. These are referred to as a Collections Agent. We will instruct Fintage House.
They will handle the collection of all funds created from theatrical, video on demand (Netflix, etc.) auxiliary (Airlines, Hotels etc.) DVD and Terrestrial. This is to protect the investors by making sure that every penny a film makes is returned as it has been agreed.
We hope this outline was helpful.