INVESTING IN MOVIES

‘You don’t have to be super-rich to invest in films – generous tax relief means that an investment of the maximum €50,000 would save you €20,500, and even better, you get the benefit up front’.

This may read like a trailer for a tax-effective blockbuster but it is written in The Sunday Tribune’s guide to Section 481, the film tax relief that plays a vital role in Ireland’s €557m movie industry.

“The beauty of Section 481 is that the relief is up-front – once a production has been cleared by the Revenue Commissioners you receive a Film 3 certificate, which means that the tax saving of €20,500 applies immediately,” writes Gareth Naughton. “This can be a PAYE refund for the current year. The investor is, therefore, up €3,900.”

The Revenue has recommended the relief continue because it has a very positive benefit for the movie industry here and it is unlikely to be cut in the upcoming Budget. However, like all investments, there are risks involved, the main one being the collapse of a project.

The piece also notes there is a misconception this relief only benefits the super-rich. In fact, anyone making over €60,000 a year can avail of it and emerge with a return of €2,000.