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UK Developers to get tax relief

Published on 25th March 2010 by Joe Martin

The new national budget has given tax relief to the games industry after heavy lobbying from groups like TIGA.

The UK Chancellor, Alistair Darling, has unveiled a new national budget that provides further support and incentives for UK-based game developers, including new tax relief.

The announcement comes after fierce lobbying from a number of groups, mainly TIGA, the UK's trade association for the games industry.

The new budget will offer financial incentives to developers that fit certain cultural criteria based on their location, size and output. Profitable developers will be able to pay less tax on their profits, encouraging growth within the UK. Struggling developers will meanwhile get assistance to reduce losses and help keep them afloat, provided they fit the criteria.

The new system is basically very similar to the support that the UK film industry currently receives and has been well-met by TIGA representatives who lobbied for the change.

"Games tax relief will increase employment, investment and innovation in the UK videogames sector," said TIGA boss Richard Wilson.

"Our research shows that games tax relief over a five year period should create or protect 3550 graduate level jobs, increase or safeguard £457 million in development expenditure and encourage developers to adopt new business models and create new intellectual property."

"Videogames are the Hollywood of the 21st century," added Wilson, who also points out that game development in the UK contributes £1 billion GBP to the UK's GDP.

"Our creative industries are a huge source of jobs, wealth and pride," said Chancellor Alistair Darling. "I will offer help to the computer games sector similar to the steps which are helping to restore the fortunes of the British film industry.

"This is a highly successful, growing industry, with half its sales coming from exports and we need to keep British talent in this country."

Let us know your thoughts in the forums.

12 Comments

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Fizzban 25th March 2010, 11:32

I think that is a brilliant idea. Maybe more games company's will open departments/offices here to take advantage of less tax. Which in turn will create more game related jobs here. There are precious few..I've looked.

SNIPERMikeUK 25th March 2010, 11:44

About time....

pizan 25th March 2010, 12:28

Quote:

Originally Posted by Fizzban
I think that is a brilliant idea. Maybe more games company's will open departments/offices here to take advantage of less tax. Which in turn will create more game related jobs here. There are precious few..I've looked.

From all the articles I read about the employees at developers working 16 hr days 6 days a week and then getting their bonuses and vacations taken away, I dont think I want that job, but thats probably just here in the US at EA and Activision.

TomH 25th March 2010, 12:31

And like the film industry, you'll end up with so many graduating with Games Study degrees that they'll have to work 'for experience' during their first 3-5 years post-graduation.

The sad part is that even if you're really passionate about it, there's going to be 10 more layabouts that just don't know what else they'd want to study... But like playing games.

It's just the same with film now, and it'll be the same with games in 10 years (if it isn't already.)

Still, this is a positive article, which shows that something good did come of the budget. Perhaps I shouldn't be so negative about it. :)

Bauul 25th March 2010, 12:53

Quote:

Originally Posted by TomH

Still, this is a positive article, which shows that something good did come of the budget. Perhaps I shouldn't be so negative about it. :)

There certainly was something positive: I saved £2.5K on my house purchase thanks to the new stamp duty threshold!

mi1ez 25th March 2010, 13:04

I didn't think this one was going to go through.

Despite the mixed bag, I think in general this year's budget is looking pretty good.

brave758 25th March 2010, 17:30

No way i refuse to believe it...........

But this is something they need to follow through, make the UK a centre of excellence, promote the industry, other wise the people will just leave and it will be all for nothing.

sotu1 25th March 2010, 18:20

Quote:

Originally Posted by TomH
And like the film industry, you'll end up with so many graduating with Games Study degrees that they'll have to work 'for experience' during their first 3-5 years post-graduation.

The sad part is that even if you're really passionate about it, there's going to be 10 more layabouts that just don't know what else they'd want to study... But like playing games.

It's just the same with film now, and it'll be the same with games in 10 years (if it isn't already.)

Still, this is a positive article, which shows that something good did come of the budget. Perhaps I shouldn't be so negative about it. :)

This is very true now. I'm going thru a bucketload of "experience" and internships and its not easy. The industry is very popular. But yes, be positive, it's about time this came about!

1ad7 25th March 2010, 20:23

Bailouts are never a good idea... period.

FelixTech 25th March 2010, 21:05

Quote:

Originally Posted by Bauul
Quote:
Originally Posted by TomH

Still, this is a positive article, which shows that something good did come of the budget. Perhaps I shouldn't be so negative about it. :)

There certainly was something positive: I saved £2.5K on my house purchase thanks to the new stamp duty threshold!

Now you can put the savings towards a Premium Player system :P

Farfalho 25th March 2010, 21:27

Hurray!

Shagbag 26th March 2010, 06:41

Like the UK film industry is such a success that the Government pulled the plug on it's 'assistance' a few years ago. I mean how many UK films are profitable for Christ's sake? How many UK based production studios have closed since film industry 'assistance' began?

No, this is a f**king joke for two reasons:
1. no matter how much financial support you provide, if the public doesn't want your product it's just an expensive (for the taxpayer) stay of execution. Look at the car industry's scrappage scheme.
2. There's a general election coming up so this could all turn out to be much ado about nothing.