Games Tax Relief to be Introduced in the Current Finance Bill
Peter Donnell / 4 years ago
TIGA, the trade association representing the UK games industry, has welcomed the news that the Government is planning to legislate for Games Tax Relief in the current Finance Bill. It said that its introduction at the earliest opportunity was the videogame industry’s top priority. TIGA also said that the introduction of a £15 million digital competition through the Technology Strategy Board and an increase in the Skills Investment Fund to £8 million would strengthen the UK video games development and digital publishing sector.
Dr Richard Wilson, TIGA CEO, said “Although Games Tax Relief has not yet received State Aid clearance from the EU Commission, TIGA has been assured that the UK Government is committed to this Relief, will be legislating for this Relief in the Finance Bill and will deliver this Relief.
“Games Tax Relief is vitally important because its introduction will enable the UK to compete on a level playing field against our overseas competitors who already have tax breaks. Games Tax Relief will also power investment and job creation and address the market failure in the under-production of culturally British video games.
“TIGA stands ready to work with the UK Government and EU Commission to accelerate the introduction of Games Tax Relief. Businesses need to see the measure introduced as soon as possible to aid commercial planning.
“The increase in the budget for the Skills Investment Fund and the new digital competition will strengthen the competitiveness of the UK games industry. Together with Games Tax Relief they make a helpful hat trick of policy measures.”
TIGA also welcomed announcements that corporation tax would be reduced to 20 per cent in 2015, The Seed enterprise investment scheme would be enhanced, R and D Tax Relief would be increased and the
Employment allowance worth up to £ 2,000 for businesses would be introduced.
This is overall very good news for the UK Economy, the games industry and for few developers that are left standing, or haven’t already moved to more tax friendly locations such as Canada, where games development is awarded massive tax breaks compared to the UK.