Invest

Investment in the StarWolf group of companies is open only to High Net Worth, Certified or Self-certified Sophisticated Investors as contained in section 21 of the Financial Services and Markets Act 2000. If you believe you are in one of these categories and are interested in learning more about investing please select qualify below.

Why Invest in Films?

When approached from a market perspective, the entertainment industry is an interesting asset class that has the potential to vastly outperform other sectors.

• Successful films can generate an exponentially higher return on investment compared to most other assets.

• Worldwide film revenues are increasing substantially, with the fastest growth happening in Emerging Markets and in Asia.

• Additional revenue opportunities are resulting from innovations in distribution technologies.

Why Invest in us?

• To participate in the thriving creative economy and strong international market for British Films.

• To be part of the excitement of making a prestige film with exclusive updates, tickets to the premiere, film set visits, and an invitation to the wrap party with the stars.

• To receive potentially high rates of return and/or substantial tax benefits. Even moderately successful film productions can generate returns in excess of those found in most other asset classes.

Why Invest Now?

To take advantage of a historical confluence of audience interest in films with female leads across audience types (Suffragette, Jackie, Star Wars, The Hunger Games), an intensification of the perennial interest in the Churchills (Darkest Hour, Dunkirk, Churchill on the five pound note) and a rapid growth in film audiences worldwide, particularly in Asia.

Why Invest through SEIS/EIS?

To access generous U.K. tax reliefs providing capital gains deferral and downside protection. Through the Enterprise Investment Scheme (EIS) eligible investors can claim up to 30% income tax relief on investments up to £1 million per tax year.

The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are UK government schemes designed to help smaller higher-risk trading companies raise finance, by offering a range of tax relief to investors who purchase new shares in those companies.

The benefits of EIS tax relief

• You can claim up to 30% income tax relief on investments up to £1 million per tax year.

• Any gain is Capital Gains Tax (CGT) free if the shares are held for at least three years.

• Payment of CGT can be deferred when the gain is invested in shares of an EIS qualifying company.

• If the shares are disposed of at a loss you can elect that the amount of loss up to 45% be set against any income tax of that year or of the previous year. EIS also provides 100 per cent exemption from inheritance tax

Tax reliefs available:

1. Income Tax Relief

There is no minimum investment through EIS in any one company in any one tax year. Tax relief of 30% can be claimed on investments (up to £1,000,000 in one tax year) giving a maximum tax reduction in any one year of £300,000, provided you have sufficient Income Tax liability to cover it.

EIS allowances are allocated individually; therefore a married couple could invest up to £2 million each tax year and be eligible for Income tax relief. The shares must be held for at least three years from the date of issue or the tax relief will be withdrawn.

2. Capital Gains Tax exemption (CGT)

Any gain is CGT free if the shares are held for at least three years and the income tax relief was claimed on them. Shares can be held for much longer and therefore potentially enable the investor to be accrue their CGT exemption over a long period of time which can be a great attraction.

3. Loss relief

If shares are disposed of at a loss, the investor can elect that the amount of the loss up to 45%, less Income Tax relief given, can be set against income of the year in which they were disposed or, on income of the previous year instead of being set off against any capital gains.

4. Capital Gains Tax deferral relief

Payment of CGT can be deferred when the gain is invested in shares of an EIS qualifying company. The gain can be made from the disposal of any kind of asset but the Investment must be made one year before or three years after the gain arose - connection to company does not matter. Unconnected investors are eligible for relief from both Income tax and CGT referral relief.

Carry Back

There is a 'carry back' facility which allows the all or part of the cost of shares acquired in one tax year, to be treated as though those shares had been acquired in the preceding tax year. Relief is then given against the Income Tax liability of that preceding year rather than against the tax year in which those shares were acquired. This is subject to the overriding limit for relief for each year.

Claiming your tax relief

The investor claims relief once the company sends through an EIS3 form. Claims are made through the Self- Assessment tax return for the tax year in which the shares were issued.
Claims can be made up to five years after the investment after the first 31 January following tax year in which investment was made.

For more information, please see the HMRC website.

Examples

Here’s a few examples of how EIS tax relief works. To make the maths easy, let’s assume you invest £10,000 in each case and you’re in the 45% tax bracket.

Case 1:

The company does well and doubles its value and you hold the shares for three years
Investment = £10,000

Income Tax relief = £3,000 (as a reduction in your income tax bill)


Capital Gains Tax = £Zero
Your gain = £13,000 (£10,000 profit from the sale plus £3,000 income tax relief)

Case 2:

The company value stays the same

Investment = £10,000

Income Tax relief = £3,000 (as a reduction in your income tax bill) Share sales = £10,000

Your gain = £3,000 (from the income tax relief)

Case 3:

The company closes and your shares are worth nothing
Investment = £10,000

Income Tax relief = £3,000 (as a reduction in your income tax bill) At risk capital = £7,000

Loss relief on at risk capital @ 45% = £3,150

Your actual loss = £3,850 (£10,000 – [£3,000 + £3,150])

Please note:

The availability of any tax relief, including EIS, depends on the individual circumstances of each investor and of the company concerned. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.

Please visit the HMRC website for further information on EIS tax relief.

Risk warning: Investing in early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Syndicate Room is targeted exclusively at sophisticated investors who understand these risks and make their own investment decisions.

Tax relief depends on an individual’s circumstances and may change in the future. In addition, the availability of tax relief depends on the company invested in maintaining its qualifying status.

Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.