INGENIOUS

Ingenious Film Sale and Leaseback

Ingenious has been at the forefront in developing this product and, since 1998, has completed more than £2.5 billion of film sale and leaseback transactions. Through our extensive network of film producers, we are able to source and combine ''large'' and ''small'' films to match investors' requirements.

Section 48

In 1997, legislation was introduced which enables individuals to claim relief on 100% of the costs incurred in purchasing a British Qualifying Film with a production budget of less than £15m.

Section 42

Section 42, which was first introduced in 1992, allows expenditure on British Qualifying Films, whose cost is over £15m, to be written off over a three-year period.

A summary of the tax reliefs available under Film Sale & Leaseback.

Section 48 / Section 42

Income Tax Relief Dependent upon the level of film costs, relief can be claimed for investment in British qualifying films over 1 to 3 years. The losses generated can be off set in the following manner, although not necessarily in the same order. Any loss remaining after the claims listed below can be carried forward and set off against future profits of the same trade.

1. Against general income in the year of the loss;
2. Against general income in the year preceding that in which the loss arose;
3. The relief under 1 and 2 above can be extended to cover capital gains of each year to the extent that the losses have not been fully absorbed by general income;
4. Against income of the preceding three years, taking the earliest year first.