Sections

EU approves UK games tax relief, signalling 188m windfall

TIGA and UKIE both celebrate landmark decision

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.

Related stories

UKIE calls on Government to help Britain become an “eSports powerhouse”

Trade body outlines ambitions to help UK sector catch up with international rivals

By Christopher Dring

Post-Brexit skills gap concerns lead agenda at TIGA Education Summit

Universities from around the UK are concerned leaving the EU will cut off much-needed skills supply

By James Batchelor

Latest comments (12)

Jakub Mikyska CEO, Grip Digital2 years ago
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 ;-)
2Sign inorRegisterto rate and reply
It didn't happen overnight
0Sign inorRegisterto rate and reply
Karl Jeffery Founder & CEO, Arooga2 years ago
Well done Richard, your dogged persistence and hard work has paid off!
0Sign inorRegisterto rate and reply
Show all comments (12)
Mark Ridgewell Rendering Engineer, EA DICE2 years ago
Finally! Maybe this will help to stem the tide of studios closing around the country. This is great news.
0Sign inorRegisterto rate and reply
Helen Merete Simm Senior UI Artist, Ubisoft Reflections2 years ago
Hmmm, what does this mean for us lowly devs? More job security? Or will we even notice the difference at our level?
3Sign inorRegisterto rate and reply
Adam Campbell Producer, Hopster2 years ago
Good job.
0Sign inorRegisterto rate and reply
Chris Hunter-Brown IT / Games specialist, BBFC2 years ago
Great news, I'm sure convincing the Commission wasn't easy at all.
0Sign inorRegisterto rate and reply
Well done TIGA and Richard Wilson
0Sign inorRegisterto rate and reply
Christian Slater DevilBliss Games Consultancy 2 years ago
There's quite an involved points system to qualify involved - 'Grand Theft Morris Dancing' beckons, I'm sure.

http://www.develop-online.net/news/revealed-the-uk-video-games-cultural-test/0113605
1Sign inorRegisterto rate and reply
Alfonso Sexto Lead Tester, Ubisoft Germany2 years ago
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 :) )
0Sign inorRegisterto rate and reply
We can all aspire to produce Flappy bulldogs in the Land of a Flooded Essex
0Sign inorRegisterto rate and reply
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

0Sign inorRegisterto rate and reply

Sign in to contribute

Need an account? Register now.