Osborne games hope sparks renewed tax breaks lobbying
TIGA stepping up efforts following hints of treasury sympathy
UK trade association TIGA is to intensify its ongoing campaign for tax relief, following claims that the government is again considering games industry incentives.
Eidos life president Ian Livingstone last week revealed to GamesIndustry.biz that chancellor George Osborne has offered an olive branch to the industry ahead of possible support in his next Budget, due March 23.
TIGA, which prepared the case for tax breaks that Osborne ultimately rejected last year, is now stepping up its lobbying in response.
Claimed TIGA boss Richard Wilson, "TIGA's Games Tax Relief makes economic sense. We anticipate over 5 years that Games Tax Relief would create or safeguard 9519 direct and indirect jobs (including 3366 jobs in the games industry), £431 million investment in development expenditure, £394 million in tax receipts to HM Treasury, at a cost of £194 million in tax relief to HM Treasury.
Wilso also argued that "TIGA is the only trade association to have consistently argued for Video Games Tax Relief - in public and in private.
"We urge game developers and publishers to join TIGA and to actively support our campaign in the weeks leading up to the Budget."
Added TIGA chairman and Rebellion CEO Jason Kinglsey, "We will be making a strong, positive case for Games Tax Relief, enhanced R&D tax credits and other fiscal measures to the Coalition Government and to other political parties in the run up to the March Budget. We need a Budget for growth."
Another report on Osborne's possible change of heart in the Sunday Times [paywall access required], which referenced tax breaks as costing £30 million a year, has been widely misinterpreted as being the sole extent of the proposed incentives. TIGA's £194 million estimate covers the span of five years - equivalent to £38.8 million per year.
Hmmm.
I read the Times article, talking of £30 million - which is a fraction of what TIGA's looking for.
If the Times is correct, I'm honestly not sure how much good it'll do. It's a drop of what's needed. When Canada's already 30/40% cheaper, using the tax relief to reduce costs by 10-15% won't have much of an impact. Still, here's hoping. One of the concerns I often hear from people is that some unscrupulous studio owners will simply pocket the extra revenue as profit rather than channel it into investment - let's hope that rules are put in place to make sure that doesn't happen.
One other thing - the Canadian provinces seem VERY good at actively going out to attract investment. I know of one studio owner in the last few weeks who's been "invited" to the Canadian High Commission in London. You also always see ads for them - I saw an ad on the Telegraph finance website last week, saying that Ontario was open for business. We could definitely take a leaf out of some of their books when it comes to aggressively trying to take business from other territories.
Edited 1 times. Last edit by Fran Mulhern on 21st February 2011 11:38am
Posted:2 years ago