UK games industry receives tax break

Posted on 25 Mar 2010 at 10:15

It may not have made the headlines for this year's budget, like the 10% price hike on cider, but tucked away was some refreshing news for UK games developers in the form of a tax break.

Given the current economic climate, and the fact that the industry has been pursuing such breaks for years, the announcement came as rather a surprise. The full budget report stated that "creative industries, including the video games industry, make a valuable economic and cultural contribution to the UK." The film industry has enjoyed such tax relief for many years.

Looking at the breakdown of figures, the relief should amount to around £90 million over the next two financial years. However, such breaks usually attract investment of many times the base sum.

Dr Richard Wilson, chief executive of Tiga, the trade association representing the UK's games industry, said "Our research shows that Games Tax Relief over a five year period should create or protect 3,550 graduate level jobs, increase or safeguard £457 million in development expenditure and encourage developers to adopt new business models and create new intellectual property. Games Tax Relief will ensure that the UK remains a world leading developer of video games."

Author: Seth Barton

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