UK Video Game Industry Delighted that Tax Breaks are in New Budget

March 21, 2012 -

Today the British government announced that tax breaks for the video game industry are part of the 2013 budget (thanks beemoh). Chancellor George Osborne announced plans to introduce corporate tax relief beginning in April 2013 for various sectors including video games, animation and high-end television industries. Osborne hopes that these tax breaks will "make the UK the technology centre of Europe."

The addition of the tax relief package for the video game industry was just one item in a broad list of changes to the tax code. The BBC has a decent overview of all of the changes here.

A number of trade organizations issued press releases on the news, including TIGA, UKIE, the University of Abertay Dundee, and Skillset.

Skillset’s Chair, Stewart Till, welcomed today's news, saying: "Today’s budget measures are a well-deserved recognition of our industries’ important contribution to the UK economy. We look forward to working with the Government and our industries during the consultation to identify the best ways to apply this relief so it helps to address the crucial skills and talent issues being addressed by the work of the Creative Industries Council’s Skillset Skills Group."

"Today’s announcement of games tax relief from the Chancellor is a breakthrough for the UK’s computer games and creative industries," said Paul Durrant, Director of Business Development at Abertay University. "By explicitly stating that our computer games industry has the same status as the animation, film and TV sectors, the UK Government has shown it is serious about making Britain an international leader in games production once again."

"Today’s tax relief is a very positive announcement, and we look forward to the UK Government continuing to show its support for the computer games industry," he added.

"This is a brilliant decision by the Government and terrific news for the UK video games industry," said TIGA CEO Dr. Richard Wilson. "It is also a decisive victory won by TIGA through audacity, determination and endurance. Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring. This victory will benefit not just the UK games development and digital publishing sector but also the wider UK economy."

"Today’s announcement sends a very positive message to the world for the UK to claim it is the best place to develop games and digital content," Eidos Life President and UKIE Deputy Chair Ian Livingstone said. "The UK is arguably the most creative nation in the world, including its world-class games designers."

"The government’s recent announcement on computer science being taught in schools, coupled with today’s introduction of a competitive tax regime regarding production, helps UK studios to compete internationally on a level playing field," he added. "The incentives are now there to encourage inward investment, job creation and for the UK games industry to reclaim its position as a world leader in games production."

Source: BBC, Image credit: Shutterstock.com


 
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