- Q1 What would I be buying?
- Q2 How much can I invest?
- Q3 What do I get for my money?
- Q4 Are there any other benefits?
- Q5 How do I know the film will actually get made?
- Q6 What do I stand to gain?
- Q7 What could I lose if the film fails to be sold?
- Q8 What’s the timescale of the film’s production?
- Q9 Why should I invest now rather than later?
- Q10 With such a bankable script, fantastic cast, production team and exciting sales forecasts for The Hot Potato, why are you looking for small investors?
- Q11 Who’s going to be in the film?
- Q12 Who’s making the film?
- Q13 What’s the film all about?
- Q14 What do I do next if I want to invest?
- Q15 Do I have to send a cheque or can I pay by Internet Banking?
Q1 What would I be buying?
Shares in Wardour Pictures Plc, the company behind the production of ‘The Hot Potato’. The company is incorporated under the EIS which means investors can claim back 20% of their investment direct from the government as soon as the film begins shooting and more if they have a Capital Gains Tax liability. For further details see the Information Memorandum.
‘Order an Information Memorandum’.
Q1(a) What is an EIS?
The Enterprise Investment Scheme (EIS) is a UK Government initiative designed to encourage private individuals to invest in the British entrepreneurial companies that drive our economy.
Investors qualify for a range of attractive tax benefits to reflect the investment risks inherent in such companies but although riskier than most traditional quoted investments, successful EIS companies also have the potential for strong growth and superior returns. Wardour Pictures plc is a qualifying company under current EIS rules
Q1(b) What are my tax benefits from this EIS investment?
- UK Income tax relief - You can reduce your income tax liability by an amount equal to 20% of the amount invested. A £10,000 investment costs you only £8,000.
- CGT Deferral Relief - Tax on unlimited gains realised on a different asset can be deferred indefinitely, where disposal of that asset was less than 36 months before the EIS investment or less than 12 months after it.
- CGT Freedom – You have no Capital Gains Tax to pay on disposal of shares after three years, or three years after commencement of trade, if later, provided the EIS initial income tax relief was given and not withdrawn on those shares.
- Loss Relief - If EIS shares are disposed of at any time at a loss (after taking into account income tax relief), such loss can be set against the investor's capital gains or his income in the year of disposal or the previous year.
For gains offset against income tax, the net effect is to limit the investment exposure to 48p in the £1 for a 40% tax payer or to 40p in the £1 for a 50% tax payer. Alternatively the losses can be offset against Capital Gains Tax at the prevailing rate - 18% from tax year 2008/09.
- Inheritance Tax Exemption - EIS Investments are generally exempt from Inheritance Tax after two years of holding such investment.
Q2 How much can I invest?
From £2,500 to £500,000 in £500 units
Q3 What do I get for my money?
You will receive a share certificate detailing your investment in the company. When the film is completed and sold, shareholders will receive a proportion of the profits.
Q4 Are there any other benefits?
Alongside the tax advantages offered by the EIS for higher rate tax payers; you will be invited to selected West End screenings; visit the set and have the opportunity to meet the stars; and to appear as background ‘extras’ in the film itself.
Q5 How do I know the film will actually get made?
As with all investments there is an element of risk, but as we now have an exciting cast (Ray Winstone, Jack Huston, Derrin Nesbitt and Lois Winstone), an American sales agent already working on our behalf to get ‘pre-sales’ at industry festivals such as Cannes, and a top flight team of film craftsmen (see ’Crew’) the signs are that we are on schedule for starting ‘pre-production’ in August and beginning Principal Photography in September this year.
Q6 What do I stand to gain?
As well as the EIS tax advantages for higher rate tax payers, you will, as an investor in the film, participate in profits from the film’s theatrical sale in all territories and to TV, Cable and Satellite channels as well as any other to any other media.
Each and every film project referred to you by Wardour Pictures has a worldwide release as its goal.
Releases could be theatrically, on DVD, Pay-TV, TV and/or Internet. A film Return On Investment (ROI) is unpredictable as the finished film can be sold in every country on every medium (35mm, DVD, Online-Streaming, etc).
Its success is dependent on the story, actors involved, crew involved and quality. It will be in the Producer's highest interest to provide the investor with a high ROI as well as profit share.
Q7 What could I lose if the film fails to be sold?
As a higher rate tax payer, you’d be able to offset a maximum of 60% of your investment against tax, so the most you could lose is just 40%
Q8 What’s the timescale of the film’s production?
We plan to start ‘pre-production’ in August of this year. Principal Photography starts in September for a six week shoot and will be followed by Post- Production (editing the film, recording the music and mixing the soundtrack, completing the visual effects and grading the film for exhibition).
Q9 Why should I invest now rather than later?
We are already spending money on setting up the film – casting, budgeting, and location scouting are all part of the budget but we need to fund them straight away. Your investment will ensure this process stays on track and on schedule, and that the film is properly prepared and ready for shooting in time.
We understand why you are asking this question but under EIS rules we aren’t allowed to incentivise you to invest earlier. The EIS is capped and from all the pledges we have taken so far, and based on past experience, we anticipate a last-minute rush, in which case it will be first come first served, and some people are likely to be disappointed.
We urge you not to become one of them.
Q10 With such a bankable script, fantastic cast, production team and exciting sales forecasts for The Hot Potato, why are you looking for small investors?
We see the EIS investment scheme as a way for Wardour Pictures to keep control of our movie and maintain our commercial and artistic independence. By gathering a group of like-minded individual investors together, looking after them and aiming to give them a decent return, Wardour Pictures will have the strength to stand up to the “money men”.
Q11 Who’s going to be in the film?
We have secured Ray Winstone for the leading part of Kenny Smith. Ray is unique among British film stars of his generation in that as well as being hugely popular in the UK, he has terrific international appeal, especially in the USA.
Playing Kenny’s friend and partner in the adventure, Danny, is Jack Huston while Lois Winstone plays Danny’s girlfriend, Carole, who turns out to surprise all the men with her resourcefulness and sharp-witted spirit of adventure.
For more details on the cast see ‘Cast’
Q12 Who’s making the film?
We have a top-flight team of film technicians with dozens of years of experience, and a host of awards behind them. Led by our Writer/Director Tim Lewiston, we have great strength and talent in every department.
See ‘Crew’
Q13 What’s the film all about?
Based on a real events which took place at the end of the 1960’s,‘TheHot Potato’ follows the adventures of Kenny Smith and Danny Nash who come across a lump of misappropriated Uranium and set out, accompanied by Danny’s girlfriend, Carole, to try and sell it to the highest bidder.
Their adventures take them to Europe and eventually to Rome where they have to try and outwit a growing band of crooks, con men and assorted villains including a fake CIA agent and a duplicitous nun, to keep control of the ‘Hot Potato’ and get the best price they can.
All ends in confusion and double- cross but our trio manage to get away with more than they expected!
See ‘Synopsis’
Q14 What do I do next if I want to invest?
Either : call this number (020 8607 8830) to speak to one of our team
Or : Click ‘here’ to take you to an interactive page where you can request a Prospectus detailing all aspects of the investment
Or : Click ‘here’
to download an Application form to invest straight away.
Q15 Do I have to send a cheque or can I pay by Internet Banking?
We can accept payment by internet banking transfer, but we must receive your completed Application form so we can be certain we have all your details for sending you the share certificate, and upcoming newsletters.
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