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EU approves UK games tax relief, signalling 188m windfall

By Dan Pearson

EU approves UK games tax relief, signalling 188m windfall

Thu 27 Mar 2014 12:38pm GMT / 8:38am EDT / 5:38am PDT

TIGA and UKIE both celebrate landmark decision


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


The Trade association for UK Interactive Entertainment

The European Union Commission has reached a decision to grant the UK's games industry cultural tax relief, a move which trade bodies estimate could result in an extra 188 million per year for the sector.

The decision is the culmination of many years of lobbying and campaigning and will help the UK to continue re-establishing itself as a market-leading force in the global games industry. Having initially been scheduled for inclusion in the budget by the outgoing Labour government in 2010, the case for tax relief has been through several setbacks and renegotiations, succeeding largely thanks to the efforts of the UK's trade bodies: TIGA and UKIE.

"This is a superb decision by the EU Commission and magnificent news for the UK video games industry," said TIGA's Richard Wilson, who has consistently championed the tax breaks. "It is also a striking success for TIGA, for its members, and for the wider video games industry that TIGA represents. GTR will create jobs, boost investment and enable the production of more British video games. "Our research has demonstrated tax relief for the UK video game sector will increase employment, drive innovation and secure additional investment in the industry. Specifically, TIGA's research has shown GTR should create and/or protect 4,661 direct and indirect jobs; encourage approximately 188 million additional investment expenditure by UK studios; generate 172 million in new and protected tax receipts to HM Treasury, and all at a cost of just 96 million over five years."

"This is a huge boost to the UK games and interactive entertainment sector and the start of a great new era of games production in the UK," commented UKIE CEO Jo Twist, who has also lobbied extensively to see the campaign succeed. "We are delighted the European Commission recognised the clear market failure for the production of games with a British and European flavour, using UK-based creative and highly skilled talent.

"We are extremely happy to have played a part, as a strong collective voice for the industry, to get the scheme over the finishing line. We have been in constant contact with government throughout the process and have applied pressure and evidence for the scheme to be introduced at every opportunity."

GamesIndustry International has editorial pieces from both Dr Wilson and Dr Twist giving deeper insight into the decision and it's connotations.

From Recommendations by Taboola


Jakub Mikyska CEO, Grip Digital

228 1,263 5.5
Meanwhile in the Czech Republic, the czech game developer association isn't even able to organize a Czech booth at the Gamescom this year.
You lucky Brits ;-)

Posted:2 years ago

It didn't happen overnight

Posted:2 years ago


Karl Jeffery Founder & CEO, Arooga

6 1 0.2
Well done Richard, your dogged persistence and hard work has paid off!

Posted:2 years ago


Mark Ridgewell Rendering Engineer, EA DICE

4 22 5.5
Finally! Maybe this will help to stem the tide of studios closing around the country. This is great news.

Posted:2 years ago


Helen Merete Simm Senior UI Artist, Ubisoft Reflections

63 314 5.0
Hmmm, what does this mean for us lowly devs? More job security? Or will we even notice the difference at our level?

Posted:2 years ago


Adam Campbell Producer, Hopster

1,471 1,576 1.1
Good job.

Posted:2 years ago


Chris Hunter-Brown IT / Games specialist, BBFC

52 15 0.3
Great news, I'm sure convincing the Commission wasn't easy at all.

Posted:2 years ago

Well done TIGA and Richard Wilson

Posted:2 years ago


Christian Slater DevilBliss Games Consultancy

28 46 1.6
There's quite an involved points system to qualify involved - 'Grand Theft Morris Dancing' beckons, I'm sure.

Posted:2 years ago


Alfonso Sexto Lead Tester, Ubisoft Germany

1,166 1,297 1.1
Good news for a Friday morning. Maybe now we will stop loosing good people to Canada (my respect for that awesome country, of course, but I would like to remain in the Europe I love :) )

Posted:2 years ago

We can all aspire to produce Flappy bulldogs in the Land of a Flooded Essex

Posted:2 years ago


John Owens CEO, Wee Man Studios Ltd

1,037 1,355 1.3
Well done everyone.

@Christian Slater

I think the points system are fine. As long as the game is made in the UK and not exclusively set in another country that exists you should be ok. At least that's how I read it.

Besides it would be cool to have a British GTA. I really enjoyed The Getaway (must of been the only one) whenever it came out.

Edited 1 times. Last edit by John Owens on 28th March 2014 4:50pm

Posted:2 years ago


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