In Cry Me A River Limited v HMRC [2022] TC08507, the First Tier Tribunal (FTT) held that the production of a single film and engaging sub-contractors did not stop the appellant from meeting the SEIS risk to capital criteria. 

The appellant was a film production company created as a special purpose vehicle for the production of one film, Cry Me A River. A second film was planned for release in 2021.

The tribunal referred to the decision in Inferno Films Limited v HMRC [2022] TC08472 and acknowledged the unique way in which film production worked.

The FTT concluded that the issue of shares met the qualifying conditions and the appeal was allowed.

Useful guides on this topic

EIS or SEIS: Advance assurance from HMRC
This is a freeview guide. Companies can apply to HMRC in advance of offering shares under either scheme to check that they meet the stringent qualifying criteria. There is no requirement to apply for advance assurance. It is a non-statutory discretionary service.

SEIS: Seed Enterprise Investment Scheme
When can SEIS relief be claimed? What are the conditions for SEIS relief? What are the benefits of SEIS relief?

Risk to capital: EIS, SEIS and VCTs
'At a glance' guide to the risk-to-capital condition for the Enterprise Investment Scheme (EIS).

Start-up film company met EIS risk to capital criteria
In Inferno Films Limited v HMRC [2022] TC08472, the First Tier Tribunal (FTT) upheld the appeal of a Welsh film company. It found that there were objectives to grow the business and as such the risk to capital criteria was met, allowing Enterprise Investment Scheme (EIS) status to be claimed.

External link

Cry Me A River Limited v HMRC [2022] TC08507


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