MPA submission on Enterprise Investment Scheme
The MPA today (Friday 20 June) submitted a paper to the treasury on the subject of the Enterprise Investment Scheme (EIS).
Our research has shown that access to finance is an issue for our members, as at the outset there are usually no assets to provide security for borrowing, and experience suggests that music publishers have difficulty getting EIS claims accepted by HMRC. Catalogue acquisition and administration have been seen as investment or passive functions, and not necessarily as creating original value. However, developments in digital technology and the internet mean that the business of generating revenue from the exploitation of music is constantly evolving, requiring both creative and entrepreneurial skills.
Production music and songwriter development involve the creation, exploitation and promotion of works and talent, and require a substantial investment of time and resources by the publisher. These activities should unquestionably be eligible for EIS relief, as original value is being created and the publisher has to accept a considerable risk that there may be little or no pay-off at the end of the process.
We believe that clearer guidance is needed from the Revenue in this area. For the full submission click on the file below
EIS Treasury Consultation.pdfEIS_Treasury_Consultation.pdf
(44.7 KB)