TIGA Applauds UK Government Corporate Tax Reduction, But Wants More

November 30, 2010 -

UK-based trade organization TIGA issued a statement this morning about the government's announcements on corporate tax reform, and its plan to introduce a "Patent Box." The UK government announced that it will introduce a Patent Box in April 2013 – a 10 percent CT rate on profits from patents. The UK government also announced a "Corporation Tax Road Map" and timetable to deliver a reduction in corporate tax for large and small businesses. The plan calls for a reduction in the rate from 28 to 24 percent over the next 4 years and a reduction in the small profits rate from 21 to 20 percent from April 2011.

"TIGA is pleased that the Government is to progress with the Patent Box and we look forward to engaging with the Treasury on our previously announced proposals to reform R&D tax credits," TIGA CEO Dr. Richard Wilson said. "Although we welcome the planned reduction in Corporation Tax this will not be sufficient to drive the creative industries forward in general and the video games industry in particular. The fact remains that the only way to drive substantial inward investment into the UK games industry is for the Government to adopt Games Tax Relief. If we really want the UK economy to be open for business the Government needs to be brave enough to look again at our proposals."

Details on the government's proposals can be found at the links below:

- Government Announcement

- Patent Box Proposal

- R&D Credit Proposals


 
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