New Tiga Report Calls for Better R&D Tax Credits

March 9, 2011 -

UK games industry trade group TIGA today published a new report called "Powering a high technology recovery: proposals for improving R&D tax credits," which continues to urge the government to improve the research and development tax credit to better support the interactive entertainment industry.

The report focuses on how the R&D tax credits system can be improved for the UK games industry. TIGA says that its proposals for the R&D tax credits would "deliver 60 - 75 percent more value to games studios than the current R&D tax credit regime." This, it says would enable studios to invest more in R&D, generate and retain new IP, and hire more development staff.

TIGA offers the following key proposals:

Scope: The scope of R&D tax credits credit should be expanded to include other associated costs incurred in the development of a new game: premises costs, the costs of applying for IP protection and design costs.

Rate of relief: The rate of relief under the SME R&D tax credit scheme should be increased from 175% of qualifying expenditure to at least 200%. This would mean that for every pound that an SME spends of qualifying expenditure it would get two pounds of tax deduction which it would use to reduce its corporation tax.

Assistance for loss making companies: SME R&D tax relief should be reformed to help loss making companies. At present, loss making businesses receive 24p for every £1 spent on qualifying expenditure. This should be increased to 28p for every £1 spent, so that loss making, R&D intensive firms also share in our proposed rate of relief.

Process: The claims process should be simplified. Developers should have a named contact within their HMRC R&D Unit to approach with questions about the eligibility of their costs and activities. Further, it would be helpful if the Government could speed up the delivery of the R&D tax relief, which is of course a retrospective form of assistance, and commit to a deadline for approval and settlement of each claim.

"This report highlights how the R&D tax credits system can be reformed to power a high technology recovery," said Tiga CEO Richard Wilson. "The UK video games industry is a high tech, highly skilled and export oriented industry that needs the right support from Government to continue to flourish. The R&D tax credits system should be reformed to promote additional investment in R&D particularly in small and medium sized enterprises. We call on the Government to support the UK video games industry by introducing TIGA’s proposals to improve the R&D tax credits in the forthcoming Budget."


 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
Matthew Wilsonbasically "we do not want to put these games on a system more then 10 people own" just joking07/27/2014 - 8:13pm
MaskedPixelanteSomething, something, the 3DS can't properly emulate GBA games and it was a massive struggle to get the ambassador games running properly.07/27/2014 - 8:06pm
Andrew EisenIdeally, you'd be able to play such games on either platform but until that time, I think Nintendo's using the exclusivity in an attempt to further drive Wii U sales.07/27/2014 - 7:21pm
Matthew WilsonI am kind of surprised games like battle network are not out on the 3ds.07/27/2014 - 7:01pm
Andrew EisenWell, Mega Man 1 - 4, X and X2 are already on there and the first Battle Network is due out July 31st.07/27/2014 - 6:16pm
MaskedPixelanteDid Capcom ever give us a timeline for when they planned on putting the Megaman stuff on Wii U?07/27/2014 - 2:23pm
MaskedPixelanteIf by "distance themselves from Google Plus" you mean "forcing Google Plus integration in everything", then yes, they are distancing themselves from Google Plus.07/26/2014 - 12:20pm
MechaTama31I wish they would distance G+ from the Play Store, so I could leave reviews and comments again.07/26/2014 - 11:03am
Matthew Wilson@pm I doubt it. Google seems to be distancing themselves from G+07/25/2014 - 9:31pm
Papa MidnightGoogle+ Integration is coming to Twitch!07/25/2014 - 8:41pm
MaskedPixelanteThis whole Twitch thing just reeks of Google saying "You thought you could get away from us and our policies. That's adorable."07/25/2014 - 2:52pm
Sleaker@james_fudge - hopefully that's the case, but I wont hold my breath for it to happen.07/25/2014 - 1:08pm
SleakerUpdate on crytek situation is a bit ambiguous, but I'm glad they finally said something: http://www.gamesindustry.biz/articles/2014-07-25-crytek-addresses-financial-situation07/25/2014 - 1:07pm
E. Zachary KnightMan Atlas, Why do you not want me to have any money? Why? http://www.atlus.com/tears2/07/25/2014 - 12:06pm
Matthew WilsonI agree with that07/25/2014 - 10:45am
james_fudgeI think Twitch will have more of an impact on how YouTube/Google Plus work than the other way around.07/25/2014 - 10:22am
IanCWelp, twitch is going to suck now. Thanks google.07/25/2014 - 6:30am
Sleaker@MP - Looked up hitbox, thanks.07/24/2014 - 9:40pm
Matthew WilsonI agree, but to me given other known alternatives google seems to the the best option.07/24/2014 - 6:30pm
Andrew EisenTo be clear, I have no problem with Google buying it, I'm just concerned it will make a slew of objectively, quantifiably bad changes to Twitch just as it's done with YouTube over the years.07/24/2014 - 6:28pm
 

Be Heard - Contact Your Politician