UK development tax breaks

Tiga, the UK's game developer trade body, today welcomed a call from the Government to provide evidence for a culturally based tax break for the UK development sector.

The letter, released today by the Department for Culture, Media and Sport, invites Tiga to provide evidence to demonstrate how the issues currently facing UK game developers can be resolved by the formation of a tax break incentive with a specifically cultural focus. The letter also recognises the work Tiga has done to bring the Government's attention to the issues that face the UK games industry.

Richard Wilson, Tiga CEO states:

We are delighted that the Government is moving quickly on this issue. A tax break on cultural grounds will produce real benefits for the UK video games industry. It will provide additional resources for qualifying game developers and potentially lead to the development of new and original games.

If the UK development community were granted a tax break on cultural grounds (similar to the French system), this would financially benefit developers and help them to compete more effectively and on a level playing field with our international competitors.

On the culturally British element of the proposed tax break, Wilson added:

Qualification under the French system is quite generous and depends on a number of factors. For example you receive points for working with European partners and for the game being published in at least three current European languages. We will of course work closely with the Government on the detail of a potential tax break to ensure it is successful.

To read the letter press release from the Department for Culture. Media and Sport please visit: http://www.culture.gov.uk/reference_library/publications/6243.aspx

Notes to editors:

1. Tiga is the trade association representing the UKs games industry. We have 150 members, the majority of whom are either independent games developers or in-house publisher owned developers. We also have outsourcing companies, technology businesses and universities amongst our membership.

2. Tiga's vision is to make the UK the best place in the world to do games business. We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members. This means that Tiga members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.