Want to invest in your favorite artists, and take advantage of tax shelters in the process? No, there's not a 1-800 number to call. But UK-based Power Amp Music is now putting out a callfor a 10 million pound ($16.1 million) artist-focused investment fund, one that includes lots of shelters for those who qualify.
This is just one of several alternative funding ideas floating around. But, it looks like the tax benefits are really for the Brits. The shelter comes into play under the Enterprise Initiative Scheme (EIS), a government plan that goes beyond music. Power Amp claims they quality, and the right investors can score as much as 20 percent of upfront income tax relief, plus tax-free capital gains, 100 percent capital gains tax deferral and 100 percent inheritance tax relief.
But is this just for playboys with too much cash and a craving for celebrity contact? Probably, but who's judging, especially when artists are getting cash to develop their music and marketing plans. Power Amp most recently funded releases for Libertines frontman Carl Barat, Charlotte Church, and Madness.
The investment window ends March 25th, and there's a 10,000 pound minimum. Interested... seriously? Well, do your research, but there's a lot more detail below (from the firm). And, even more is available at powerampmusic.com.
from Power Amp (again, invest with care)...
Power Amp Music has successfully invested in several high profile artist projects to date such as iconic British pop band Madness, Welsh singer/songwriter Charlotte Church and former Libertines frontman Carl Barat.
The first of these established deals, with Madness, delivered a 17.5% gross profit, which is equivalent to a 46.9% net profit after available tax reliefs (currently unaudited and unpublished) in less than 2 years. This achievement clearly demonstrates Power Amp's ability to identify, sign and operate lower-risk established artist investments successfully.
To further de-risk each established artist investment, pre-sale agreements are required to be secured for each artist from music distributors, publishers and promoters etc. These agreements guarantee that minimum revenues equivalent to at least 80% of the invested capital will flow back into the company.
For example Power Amp has already secured an agreement with theUK
When added to the 20% upfront income tax relief, these 80% pre-sale agreements effectively preserve investors capital, meaning they should receive at least £1 back for every £1 invested. However, based on past performance Power Amp Music can reasonably target a modest mid case return of £1.20 for every £1 invested, which after income tax relief is equivalent to a 50% tax free gain over the 3 to 4 year life of the Fund.
This latest offering is being promoted and overseen by EIS and VCT fund raising specialists Enterprise Corporate Finance headed up by Martin Sherwood and Christian Elms, who both promoted of the first Edge Performance VCT, which has now raised over £70m.
This is just one of several alternative funding ideas floating around. But, it looks like the tax benefits are really for the Brits. The shelter comes into play under the Enterprise Initiative Scheme (EIS), a government plan that goes beyond music. Power Amp claims they quality, and the right investors can score as much as 20 percent of upfront income tax relief, plus tax-free capital gains, 100 percent capital gains tax deferral and 100 percent inheritance tax relief.
But is this just for playboys with too much cash and a craving for celebrity contact? Probably, but who's judging, especially when artists are getting cash to develop their music and marketing plans. Power Amp most recently funded releases for Libertines frontman Carl Barat, Charlotte Church, and Madness.
The investment window ends March 25th, and there's a 10,000 pound minimum. Interested... seriously? Well, do your research, but there's a lot more detail below (from the firm). And, even more is available at powerampmusic.com.
from Power Amp (again, invest with care)...
Power Amp Music has successfully invested in several high profile artist projects to date such as iconic British pop band Madness, Welsh singer/songwriter Charlotte Church and former Libertines frontman Carl Barat.
The first of these established deals, with Madness, delivered a 17.5% gross profit, which is equivalent to a 46.9% net profit after available tax reliefs (currently unaudited and unpublished) in less than 2 years. This achievement clearly demonstrates Power Amp's ability to identify, sign and operate lower-risk established artist investments successfully.
To further de-risk each established artist investment, pre-sale agreements are required to be secured for each artist from music distributors, publishers and promoters etc. These agreements guarantee that minimum revenues equivalent to at least 80% of the invested capital will flow back into the company.
For example Power Amp has already secured an agreement with the
When added to the 20% upfront income tax relief, these 80% pre-sale agreements effectively preserve investors capital, meaning they should receive at least £1 back for every £1 invested. However, based on past performance Power Amp Music can reasonably target a modest mid case return of £1.20 for every £1 invested, which after income tax relief is equivalent to a 50% tax free gain over the 3 to 4 year life of the Fund.
This latest offering is being promoted and overseen by EIS and VCT fund raising specialists Enterprise Corporate Finance headed up by Martin Sherwood and Christian Elms, who both promoted of the first Edge Performance VCT, which has now raised over £70m.
