TIGA Again Urges Tax Relief for Game Developers

December 2, 2009 -

Noting that the UK game industry continues to shrink, even as the worldwide videogame market continues to grow, TIGA has prepared a Pre-Budget Report outlining the steps it would like to see implemented in order to grow the UK game developer population.

TIGA CEO Richard Wilson called Games Tax Relief “absolutely essential,” claiming that unless such a program is implemented, employment in the game sector will fall by 5% in each of the next five years. If tax breaks were introduced, TIGA says the industry could grow 2% in 2011 and 4% in each of the three following years. They estimate that the tax measure would cost “cost £192 million but would deliver £415 million in tax receipts” over five years.

TIGA is also calling for a freezing of corporation tax rates and National Insurance Contributions for the coming year (and a one percent cut in the future for both), extending research and development tax credits, stimulating investment into firms that generate intellectual property and bumping up the value of corporation tax losses.

Wilson added, “The UK Government has a clear choice: invest in an inherently successful industry to perpetuate our leading position in the world, or preside over the decline of a key knowledge industry.”

As part of Games Tax Relief, TIGA suggest three tiers of breaks: 20 per cent of core expenditure for budgets above £6,000,000, 25 per cent for budgets over £3,000,000 but less than £6,000,000 and 30 per cent for budgets of over £100,000 but under £3,000,000.

The game industry group made its report in advance of the government’s December 9 Pre-Budget Report, noting that, “This is the last serious chance to demonstrate a commitment to the sector in the life of this Parliament.”

The full report can be downloaded here (PDF).

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ZippyDSMleeIf they built upward then it would becoem like every other place making it worthless, if they don't build upward they will price people out making it worthless, what they need to do is a mix of things not just one exstreme or another.04/16/2014 - 4:00pm
Matthew Wilsonyou know the problem in SF was not the free market going wrong right? it was government distortion. by not allowing tall buildings to be build they limited supply. that is not free market.04/16/2014 - 3:48pm
ZippyDSMleeOh gaaa the free market is a lie as its currently leading them to no one living there becuse they can not afford it makign it worthless.04/16/2014 - 3:24pm
Matthew WilsonIf you have not read http://arstechnica.com/gaming/2014/04/introducing-steam-gauge-ars-reveals-steams-most-popular-games/ you should. It is a bit stats heavy, but worth the read.04/16/2014 - 2:04pm
Matthew Wilsonthe issue is when is doesn't work it can screw over millions in new york city's case. more often than not it is better to let the free market run its course without market distortion.04/16/2014 - 9:36am
NeenekoTrue, and overdone stagnation is a problem. It is a tricky balance. It does not help that when it does work, no one notices. Most people here have benifited from rent controls and not even realized it.04/16/2014 - 9:23am
ZippyDSMleehttp://www.afterdawn.com/news/article.cfm/2014/04/15/riaa_files_civil_suit_against_megaupload04/16/2014 - 8:48am
ZippyDSMleeEither way you get stagnation as people can not afford the prices they set.04/16/2014 - 8:47am
Neenekowell, specifically it helps people already living there and hurts people who want to live there instead. As for 'way more hurt', majorities generally need less legal protection. yes it hurt more people then it helped, it was written for a minority04/16/2014 - 8:30am
MaskedPixelantehttp://torrentfreak.com/square-enix-drm-boosts-profits-and-its-here-to-stay-140415/ Square proves how incredibly out of touch they are by saying that DRM is the way of the future, and is here to stay.04/16/2014 - 8:29am
james_fudgeUnwinnable Weekly Telethon playing Metal Gear http://www.twitch.tv/rainydayletsplay04/16/2014 - 8:06am
ConsterTo be fair, there's so little left of the middle class that those numbers are skewing.04/16/2014 - 7:42am
Matthew Wilsonyes it help a sub section of the poor, but hurt both the middle and upper class. in the end way more people were hurt than helped. also, it hurt most poor people as well.04/16/2014 - 12:13am
SeanBJust goes to show what I have said for years. Your ability to have sex does not qualify you for parenthood.04/15/2014 - 9:21pm
NeenekoSo "worked" vs "failed" really comes down to who you think is more important and deserving04/15/2014 - 7:04pm
NeenekoThough I am also not sure we can say NYC failed. Rent control helped the people it was intended for and is considered a failure by the people it was designed to protect them from.04/15/2014 - 7:04pm
NeenekoIf they change the rules, demand will plummet. Though yeah, rent control probably would not help much in the SF case. I doubt anything will.04/15/2014 - 1:35pm
TheSmokeyOnline gamer accused of murdering son to keep playing - http://cnews.canoe.ca/CNEWS/Crime/2014/04/15/21604921.html04/15/2014 - 11:50am
Matthew Wilsonyup, but curent city rules do not allow for that.04/15/2014 - 11:00am
ZippyDSMleeIf SF dose not start building upwards then they will price people out of the aera.04/15/2014 - 10:59am
 

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