TIGA have announced that the new tax legislation for UK games developers has been held back, but it’s still coming.
A few months ago, TIGA announced a new movement to grant UK games developers a similar tax break to those provided for film producers with the strong intention of supporting the UK games industry.
This Games Tax Relief would allow UK developers to dodge a couple of the media taxes levied at them, whilst they’re making new games and intellectual properties. Whilst this certainly helps out the bigger companies, it also gives indie developers a much bigger chance in the early days of their process.
This new legislation, however, has been delayed due to not being cleared by the EU commission, according to Dr. Richard Wilson, CEO of TIGA.
Although Games Tax Relief has not yet received State Aid clearance from the EU Commission, TIGA has been assured that the UK Government is committed to this Relief, will be legislating for this Relief in the Finance Bill and will deliver this Relief.
Games Tax Relief is vitally important because its introduction will enable the UK to compete on a level playing field against our overseas competitors who already have tax breaks. Games Tax Relief will also power investment and job creation and address the market failure in the under-production of culturally British video games.
TIGA stands ready to work with the UK Government and EU Commission to accelerate the introduction of Games Tax Relief. Businesses need to see the measure introduced as soon as possible to aid commercial planning. The increase in the budget for the Skills Investment Fund and the new digital competition will strengthen the competitiveness of the UK games industry. Together with Games Tax Relief they make a helpful hat trick of policy measures.