We at Nyman Libson Paul are heavily involved with EIS and have seen the scheme’s popularity grow in recent years, particularly since the increase in Income Tax relief to 30% in 2011. Whilst we are still waiting for EU State Aid approval for the annual raise limit to go up to £10 million, some other good news has come along in the meantime.

Film Industry fears over new qualifying rules were eased, when previous proposals were dropped in favour of anti-avoidance measures aimed at circular schemes and pre-funded businesses. Meanwhile, easing of rules for connected persons means that investors may also make loans to EIS companies without it impacting on the number of shares they may hold. This offers more funding options and should prove attractive to investors and companies alike.

We now have the details of SEIS (Seed EIS). Offering 50% tax relief and a 2012-13 CGT holiday on investment, it applies so that a company can raise up to £150,000 in total if it has up to 25 employees and assets up to £200,000 at the time of issue. It must be a new trade and directors may invest. At least £75% of the SEIS money must be used before any EIS money can be raised. If SEIS is used in the same year as EIS it will also restrict the amount raised under EIS.

It just gets better…

Describe a typical day

Well today I have rushed from of a meeting with some film producers looking to raise money for their project, to this blog interview. This afternoon I have two meetings with West End solicitors representing some other people who are making films and then this evening I am off to a launch party for an EIS share offer document to raise money for a film called Northern Soul. Tomorrow is similar, I have meetings in the West End to discuss EIS fund raising for film development and will end up at an evening reception to celebrate the green lighting of a film following an EIS fund raise we worked on. I do actually sit at my desk alot too, honestly!

Music is close to your heart I believe, tell me more

I spent many years working in the club promotion business and love music so tonight it will be good to shuffle around the dance floor to some of my favourite tunes (and enjoy a couple of beers) after having worked hard on the Northern Soul offer documents. As they say, it’s a tough job but someone has got to do it! It’s really nice to be able to go to events and dance after years of being a club promoter where I’d spend the evening rushing around making sure everything was running smoothly.

How has your previous working life helped you in your role at NLP?

The creative and organisational skills and the knowledge that I gained in the entertainment industry have been an invaluable insight in my role as an entertainment accountant. My experiences in performing as a DJ, promoting, creating concepts and stage managing gives me a certain empathy with entertainment industry clients.

How has your job changed most recently?

My life has been transformed over the last few years by the increase in the film industry’s use of EIS to raise money for film finance which coupled with our expertise in film tax credits is making us a popular one stop shop. This has made me very busy but when you are busy doing something that is fun and interesting it is a job to die for.

Naturally, the ‘yah boo’ nature of these House of Commons events and the mainstream press emphasising the political ramifications in priority to any economic debate, can sometimes obscure the real relevance of the Chancellor’s announcements. To be fair, much that was announced in the Autumn Statement was limited to conceptual headlines and only when more substance is revealed will serious assessment be possible, so maybe the media are right to focus on opinion polls after all? Nick Robinson 1, Robert Peston Nil.

We will leave you to make your own mind up with regard to the political point scoring, but here are a few highlights for Tax Enthusiasts who will have to wait until draft legislation surfaces to get their teeth properly into the issues (diary note on 6th December chaps!):

R&D Tax Credit

We at Nyman Libson Paul do like to a bit of R&D, so improvements to the scheme are always welcomed. The announcement of the introduction of an ‘above the line’ R&D Tax Credit in 2013 for larger companies, on closer examination, may not turn out to be quite as generous as it first sounds. Currently claims notionally increase expenses therefore reducing tax, however the idea here is that claims will directly reduce tax. In other words the amount of tax relief may not actually move, although unusable credits could be cashed in. We will have to wait for more detail, and 2013, to make judgement.

Capital allowances

Businesses located in certain Enterprise Zones in the North and the Black Country will benefit from 100% Capital Allowances, whilst those eying up the Southampton Enterprise Zone may want to consider spending less when kitting out their new premises.

Enterprise Investment Scheme (EIS) and the all new SEIS

A new kid on the block, SEIS, or ‘EIS Lite’ as you may wish to call it, will be a mini-EIS scheme aimed at raising Seed Funding for smaller businesses. Whilst it has limits of £150,000 per company and any one individual can only invest up to £100,000, it does offer a whopping 50% tax relief on investment. Add this to the opportunity to get Capital Gains Tax exemption on a gain rolled into such an investment during 2012-13 and an investor could save up to 78% just by investing, very attractive!

We are also keen to see details of proposals to relax the rules on Connected Persons investing in EIS companies and also relaxations on the type of shares that may qualify. Meanwhile we hope that measures aimed at prohibiting sham set-up companies exploiting EIS tax relief do not end up stifling genuine EIS contenders.

Venture Capital Trusts

Venture Capital Trusts will be delighted to hear that they can now sink more than £1 million into a single company. We are told that this is to reduce the administrative burden on VCTs. Cynics will no doubt anticipate some new forms to be introduced to accompany this relaxations but we remain optimistic.

Tax Credits

Working Tax Credits and Child Tax Credits are to remain at 2011/12 levels for 2012/13, which is unlikely to score George Osborne political points with many voters.

VAT – Low Value Consignment Relief

There have been some great bargains to be had recently from various internet sites and there may be good reason, hitherto VAT has not been sought on low value packages valued at less than £15 sent from the Channel Islands (ever wondered why when you ordered two CDs they came separately?). But all that will change from 1 April 2012, so may we recommend downloading your favourite tunes electronically from then on?

VAT – cost sharing exemption

VAT exempt bodies may choose to share services in future as a VAT exemption will be introduced with a view to benefitting organisations such as charities and universities we are told, oh hang on, aren’t banks exempt too?

Gifts of pre eminent objects

Antiques Roadshow may need re-formatting if this proposal goes ahead – tax discounts on gifts of works of art or historical objects to the nation…maybe they’ll need an accountant on the show too, can you think of one that may be suitable?

Fuel Duty and Air Passenger Duty

If you are planning taking the kids to Disneyland next year, then you may want consider driving to Northern Ireland and flying long haul from there. Well, perhaps not, but planned Fuel Duty rises are being held back whilst Air Passenger Duty has been reduced for long haul flights from Northern Ireland.

Not such good news for business jet users though, from April 2013 Air passenger Duty will be extended to Business Jets. Maybe Business Jet owners will be describing their assets as Pleasure Planes in future?

Manufactured Overseas Dividends

No, this has nothing to do with UK manufacturing jobs disappearing overseas, or maybe indirectly it does? Anyway, this anti avoidance measure has effect from 15 September 2011and seeks to avoid loss to the Exchequer from manufactured overseas dividends that have the effect of costing the UK tax repayments or reductions based on credits on tax that it has not received.

Employer Asset backed Pension Contributions

From 29 November 2011 restrictions on these contributions will come into force with draft clauses published immediately, so Tax Enthusiasts can start storming through these clauses with relish, something to keep them going until 6th December!!

A treat for Soul and Motown fans everywhere, but particularly for Dave Morrison of NLP who worked on the document. ‘Despite being a southerner I used to go to the Wigan Casino All-Nighters as a youngster and still love the music. I couldn’t believe my luck when this assignment came through the door!’.

The film is the brainchild of Elaine Constantine one of the world’s top fashion photographers and her photographs certainly add style to the brochure. Elaine has been running dance classes for young actors so that they can learn the old dance moves and clips can be seen at the film’s website http://www.northernsoulthefilm.com/ . In fact, if you look closely enough, you may even catch a glimpse of Dave Morrison shuffling around at the back of the dance floor!