British film success has never been more apparent than at Sunday’s Academy Awards ceremony and London/Los Angeles based film production finance powerhouse Future Films is launching two dynamic new film funds for investors to get involved in the current growth and profitability of great British filmmaking.
Future Films, which produces films with some of cinemas great filmmakers such as Ridley Scott and Oscar nominated film director Michael Radford and top acting talent such as Oscar winner Penelope Cruz, Demi Moore, Eva Green, Sir Michael Caine, John Cleese, Gary Oldman, Sir Ben Kingsley and Joseph Fiennes, has constructed a dynamic new film fund that will invest in British films set to shoot this year.
The Double M and M2 Funds enable private investors be part of this extraordinary moment in British film history and to get involved in high quality films looking for serious finance. Simply, the Double M Fund takes advantage of the statutory allowance that an investor has to £25,000 of sideways loss relief (i.e. offsetting a loss from one trade against the income from another). The investment is limited to £35,000 per person.
The Double M Fund enables the investor to put up £10,000 and borrow £25,000 and then receive tax relief of 40% on £25,000, which equals £10,000. The investor thereby has an investment in the film for almost £0, because the tax repayment roughly equates to the amount of equity invested in the first place. This money is then invested by Future Films into a number of film productions it is currently developing and financing. What makes Future Films’ new funds so attractive is that, unlike an EIS or VCT investment, there is no real capital risk after the tax break.
The M2 Fund offers investors the opportunity to get hands-on experience of major filmmaking. By creating a partnership of active traders who “participate” in the production of a film, investor can put up a limitless amount of investment. If an investor wishes to invest £1 million, the gearing is 25% (£250,000). But the tax relief is 40% of the £1 million, meaning the investor is cash positive of £150,000.
"British filmmaking has never been more profitable and more in demand than at this moment," says Future Films' CEO Stephen Margolis. "We are launching these funds at exactly the right time to catch the growing international demand for British films and to give investors the opportunity to be very much a part of the current buzz."
Unlike other similar funds in the marketplace who operate at arms length, Future Films is a major player in British film production with a 20-year track record in producing and financing feature films.
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