Investors in approved film and television projects can obtain tax relief via the Section 481 tax incentive scheme that encourages film making in Ireland. The tax incentive is based around a refundable corporation tax credit, which is provided to the production company. This is in line with most film tax incentives operating in many other jurisdictions around the world including UK and USA. In the UK, the financing of film productions through pooled investments similar to this scheme have been in place for some time and provide attractive returns to investors by providing loan finance secured against production contracts on fully vetted and fully financed, blue chip film and television projects.
BCP recently launched its Film Finance Scheme that aims to achieve the same level of success by providing strategic lending to fully financed film and television projects produced in Ireland. Grant Thornton, one of the world’s leading tax and advisory firms, introduces and proposes each Film project and lending opportunities. Grant Thornton’s Media Team has an exceptional track record, placing €500 million in 200 successful projects.
BCP and Grant Thornton have established a robust, multi-layered investment process with strict investment criteria. This is specifically designed to reduce risk to investors and includes the following:
- Projects must be fully funded and fully contracted
- Production companies must have a strong and proven track record
- Maximum loan for any one project is €500,000
- Maximum loan term is 6 months
- Projects must be proposed by the Grant Thornton Media Team and Approved by BCP’s Investment Committee
- Minimum interest rate is 12% per annum
The minimum investment is €20,000 for a fixed term of 3 years. Investors will be paid an annual coupon in March each year based upon the returns earned and the cash flows of the Scheme. The level of coupon payable will be determined by BCP. In certain circumstances, it may be possible to declare an interim coupon during the year. The total target annual pay-out will be 8% gross per annum.
This Scheme is NOT regulated by the Central Bank of Ireland and investors should take competent financial advice before making any investment decision.