Brendan Burgess
Founder
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- 54,775
I have seen different interpretations of this, so I would welcome clarification from someone who has invested in them.
I thought that it was fairly simple, and this example from Mazars confirms my understanding. There is no date on it, so has the system changed?
|no film|film
Income |€82,800|€82,800
Less relief|0|€50,000
Taxable income|€82,500|€32,800So if I write out a cheque for €50,000, I will save €20,500 tax. In other words, my investment will cost me €29,500.
When the film is finished, if I get my €50,000 back, I have saved €20,500 in tax. If I get back more, I get a good return on my investment. As long as I get at least €29,500 back, I am ahead.
I thought that it was fairly simple, and this example from Mazars confirms my understanding. There is no date on it, so has the system changed?
Income |€82,800|€82,800
Less relief|0|€50,000
Taxable income|€82,500|€32,800
When the film is finished, if I get my €50,000 back, I have saved €20,500 in tax. If I get back more, I get a good return on my investment. As long as I get at least €29,500 back, I am ahead.