BUDGET: Tax relief for games industry
The UK Game Industry Trade Association [TIGA] has been celebrating following a government announcement to introduce a corporation tax relief scheme targeted at the video game industry from 2013.
The UK game industry trade association TIGA has been celebrating this week following a Government announcement to introduce corporation tax relief for the video game industry in 2013 following a consultation.
The tax relief was originally in the Labour Government’s final budget in March 2010 but was subsequently dropped by coalition Chancellor George Osborne from the following June’s budget after he called the original plans “Poorly targeted”.
Since 2010 TIGA have been campaigning to bring in tax relief for their industry. This included garnering support from politicians of all parties, presenting a petition to Downing Street and raising the public profile of the cause. They’re delighted about the results.
TIGA CEO Dr Richard Wilson said: "Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry. Our research shows that Games Tax Relief should generate and safeguard: 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector’s contribution to UK GDP by £283 million; generate £172 million in new and protected tax receipts to HM Treasury, and could cost just £96 million over five years.”
The planned cut in corporation tax is also designed to help animation and high-end television industries. This should support the Government’s long-term aim to make the UK the hub of new technology in Europe.