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UK games industry

TIGA's nose out of joint as Prime Minister confirms tax break for film industry.

TIGA, the trade association representing the UK games industry, today welcomed the Prime Ministers announcement of continued support for the sector specific tax credit for the film industry. However, this position makes the Government’s disinclination to introducing Games Tax Relief even more extraordinary.

The Prime Minister made the commitment to the Film Tax Credit in today’s (17 th November 2010) Prime Ministers Questions in response to a question from the Conservative MP for Watford, Richard Harrington.

Dr Richard Wilson, TIGA CEO, commented:

“Whilst, we are pleased that our friends in the film industry will continue to receive sector specific support, we find it extraordinary that the Government continues to oppose introducing Games Tax Relief. Richard Harrington MP made clear in his question that a key contributing factor to Warner Brothers’ decision to continue to invest in the UK, and create 600 more jobs in Watford, was the film tax credit. If the shoe fits for the film industry why does the Government continue to argue it does not for the video games industry?”


Notes to Editor:

1)     It was envisaged that Games Tax Relief would be calculated and applied in a similar manner to the existing tax relief for British films; video games would need to pass a cultural test to benefit from the tax break; there would be tiered rates of relief to reflect a range of development budgets; any interactive product, including entertainment, educational and commercial products, could potentially benefit from the relief.

2)     Over a five year period Games Tax Relief was expected to: create or save 3,550 jobs, increase and safeguard £457 million in new and saved development expenditure, cost £192 million in tax relief but generate £415 million in new and saved tax receipts. 

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