Report Comment to a Moderator Our Moderators review all comments for abusive and offensive language, and ensure comments are from Verified Users only.
Please report a comment only if you feel it requires our urgent attention.
I understand, report it. Cancel

TIGA wants tax relief for cancelled games

By Rachel Weber

TIGA wants tax relief for cancelled games

Wed 06 Mar 2013 8:39am GMT / 3:39am EST / 12:39am PST

Says 22% of UK developers have had games cancelled by publishers


TIGA is the trade association representing the UKs games industry. The majority of our members are...

Trade association TIGA has called for protection for cancelled projects under the government's new Games Tax Relief.

"Some publishers have been known to leave studios high and dry by obliging them to maintain teams of developers for months on end, only for them to finally cancel projects. This can have damaging repercussions for the studios in question," explained CEO Dr Richard Wilson.

"Just as some expenditure on unreleased films qualifies for film tax relief, so cancelled game projects should in principle be eligible for Games Tax Relief. This is consistent, fair and reasonable. Provided that the game in question would pass the cultural test and is demonstrably intended for release then it should in principle be eligible for Games Tax Relief."

The associations's 2011 research found that 22 per cent of UK developers had experienced a cancellation by a publisher before a game was completed. It suggests that pre-production work and prototypes should qualify for Games Tax Relief.

"Games Tax Relief is designed partly to promote the creation of new content," added Rebellion CEO Jason Kingsley.

"By enabling developers to claim Relief on cancelled projects, the viability of studios will be enhanced. Studios will have more confidence to develop and pitch new IP to external publishers, or experiment with more direct to consumer business models. TIGA will be contacting Government officials to emphasise these issues and to seek clarity of guidance on these points."

Draft legislation for the Games Tax Relief was published in December, and revealed support for post-release development like DLC, a cultural test to judge games' eligibility for the scheme and that there would be no minimum budget.

From Recommendations by Taboola


gi biz ;,

341 52 0.2
Wouldn't this open the way to a number of possible frauds?

Posted:3 years ago


Russell Watson Senior Designer, Born Ready Games

86 34 0.4

A certain German director springs to mind?

Posted:3 years ago


Benjamin Crause Supervisor Central Support, Nintendo of Europe

109 62 0.6
I believe this would be a dangerous move.
Tax reliefs should be only granted to those who produced an actual product that enters the market and creates revenue/taxes.
Otherwise it would look like a scam and opens up for all kind of frauds.

Posted:3 years ago


Shane Sweeney Academic

505 603 1.2
Can someone genuinely explain to me how developers don't have cast iron contracts with publishers with built in penalties for cancelling projects? I've worked in many software industries and this is pretty normal? Are publishers just to big and powerful compared to small developers?

Posted:3 years ago


Matthieu Mandeville Technical Game Analyst, Gameloft Montreal

5 4 0.8
Isn't hat basically what R&D tax credits are for in the first place?

Posted:3 years ago


David Amor Director, MAG Interactive

29 37 1.3
In theory you're always working on a full Software Development Agreement complete with kill fees but in practice it takes a long time to get the SDA in place and you're often just running on an ever-extending Statement of Work. It's an exposed position but pragmatism means that's often the case. I've also seen plenty of SDAs either with insufficient kill fees or without them altogether.

Edited 1 times. Last edit by David Amor on 6th March 2013 5:36pm

Posted:3 years ago

This may be the straw that breaks the camels back - executives of a number of high profile developers have managed to avoid legal sanction of corrupt or inept business practice - a TAX recoup on failed projects would come with a declaration of responsibility and the possibility of prosecution for fraud and illegal practice / reporting. I think TIGA may have picked a wrong move with this as it could see their members in the dock!

Also what happened to that Whistle Blower hot line about bad practice in development studios?

Posted:3 years ago


Adam Campbell Producer, Hopster

1,472 1,576 1.1
Call me biased but I think whatever films get in the UK, games should have access to as well.

I don't see why one should get all the benefits over the other, especially when our games industry is so powerful and has a lot more potential still.

Posted:3 years ago


Fran Mulhern , Recruit3D

863 708 0.8
The problem is value for money for the taxpayer. Cancelled games won't go down well with the public, so the government probably won't allow it. We'll know soon enough though.

Posted:3 years ago


Login or register to post

Take part in the GamesIndustry community

Register now