Obtain £3000 tax back for every £10,000 invested and look forward to tax free growth. Projected returns of 15% p.a. compounded over 5 years.

Ideal for anyone with taxable income for 2008-09.

Investment closes 31st July 2008.

What is the aim of the opportunity?

The opportunity is offered by an investment firm specialising in funding for the film and entertainment industries, utilising any tax breaks available. This offering is to:

• Create and market live events (such as concerts) and related premium entertainment content for various distribution media.
• Take advantage of available tax breaks.
• Create a low risk investment product using a combination of tax breaks and careful contract negotiation.

What is the opportunity?

To invest in a growing sector of the economy via a proven specialist investment firm, with tax breaks and contractual guarantees significantly lowering risk to capital. In addition, returns are completely uncorrelated with equities, property or bonds thus complementing a well balanced investment portfolio.

In order to qualify for full tax relief the investment must be held for at least 5 years, so this opportunity is designed to run for 5 years.

How safe is my investment and how does it work?

The investment is a specialist Venture Capital Trust which attracts a 30% income tax break on entry, with any eventual profits being free of capital gains tax or income tax. The VCT is managed by a well known investment firm specialising in the entertainment industry.

Invested money will be used to buy, or fund development of, entertainment content such as film, television series, computer games and merchandise as well as capitalising on the rising popularity of live events such as concerts and stage shows.

Initial investment attracts a 30% tax break which can be offset against income. In effect, for each £1 share an investor has to put in only 70p. 30% of the fund will be kept in cash and in addition the Manager's investment strategy will require each Investee Company seeking funding to put into place pre-sales or similar minimum revenue arrangements such that the minimum return is 75p.

The investment firm has seeded the VCT with £1 million of their own money without the tax incentive to demonstrate their own confidence in the quality of this opportunity. A further £19 million has already been invested by private individuals.

What is the expected return?

As a result of the tax incentive and contractual guarantees, the minimum return on this investment is 2.9% per annum. Target return is 15.1% per annum compounded, or 102% over the 5 year term.

A private individual earning £35,000 p.a. could invest £20,000 and will receive a tax rebate of £6,000 typically within 6 months, in effect an investment of £14,000 for £20,000's worth of shares. In 5 years' time the fund is liquidated and the investor should receive at least £16,150 back. At the target 15.1% return the investor would receive £28,280 back tax free. In addition, there may be dividend distributions from time to time.

Who can invest?

Anyone over 18 can invest personally, whether employed or self employed. The minimum investment is £3,000.

Can I exit whenever I want?

No. This opportunity is designed to take advantage of VCT tax incentives so must be held for the full 5 years. Remember that you get your 30% tax rebate shortly after investing. There may be dividend income during the lifetime of the investment, although dividends are not guaranteed.

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Not all areas of tax incentivised investments are regulated by the Financial Services Authority. The Financial Services Authority does not regulate tax advice