Tiga welcomes budget measures on R&D tax credits

22nd March 2007

Tiga, the trade body representing development studios in the UK, today welcomed the announcement in the budget that R&D tax credits were to increase from April 2008.

The current rate of 150% for small companies will rise to 175% and from 125%-150% for larger companies. Definitions of small and large companies are also improved so that companies with up to 500 employees can claim the higher rate (up from 250).

Tiga has campaigned relentlessly for the R&D tax credits to be improved to match those offered in territories such as Canada.

In February this year Tiga wrote to the Chief Secretary to the Treasury, Stephen Timms, to draw attention to the differences in the regimes - which were playing a part in the relocation of studios to Canada - and to ask for a meeting.

At an industry summit held yesterday with DTI and DCMS ministers, Tiga representatives also welcomed the ministers' supports for the Tiga campaign to get the definition of R&D modified to reflect the innovation and risks associated with games development.

"Three years ago, we proposed at a meeting with Gordon Brown that the definition of R&D used to identify what is or is not R&D in games, should be modified, away from traditional notions related to laboratories and manufacturing industries to reflect the growing importance of knowledge based industries such as games and innovation in theses sectors. We have consistently told the treasury that the credits were not enough to make a difference to innovation in the games sector and it is good to see the government has listened to what the industry has to say," says Tiga CEO, Fred Hasson.

For further details please contact Stephanie Rickwood on 0845 094 1095.