With the popularity of TV programmes like X Factor and global success of iPods, it was never going to be too long before investing in bands, as well as listening to them, became a reality. Jazz Summers, an experienced music industry mogul, has joined forces with Power Amp Music to raise £10m for the Power Amp Music fund.

The fund which falls under the Enterprise Investment Scheme (EIS), aims to develop up to 30 artists from emerging to established ones.

The fund will make money through the production and promotion of the artists. Power Amp say investors will benefit from all revenue streams – recording, publishing, concerts, merchandising etc. Investors will be entitled to income tax relief at 20% and to defer Capital Gains Tax (CGT) on profits made in the previous three years of forthcoming twelve months.

With CGT rates likely to fall to a standard 18% in next month’s budget, EISs like this one are likely to be very popular.

Jazz Summers has worked with acts such as Snow Patrol, The Verve and in the past with George Michael’s former group Wham.

• Money Lessons In Schools -21/01/2008