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Government to reconsider tax relief for games

Government to reconsider tax relief for games

The Government may reconsider the possibility of tax relief for UK developers and publishers.

The UK Government is planning to reconsider whether or not the UK games industry should be supported with tax incentives, according to letters from Chancellor George Osborne.

Responding to Dundee MSP Joe FitzPatrick's complaints that companies in his area were losing out to those in other countries, Osbourne wrote that the Government will review plans later this year.

"The UK's R&D tax credit schemes provide an internationally competitive tax regime for R&D activity, providing nearly £800 million of relief and supporting around 7,500 innovative companies each year, including companies in the video games industry," Osbourne wrote, according to Eurogamer.

"To ensure the continued effectiveness of the schemes, the Government will consult with business in autumn 2010 to review the taxation of intellectual property, the support R&D tax credits provide for innovation and the proposals of the Dyson review."

The UK games industry has long lobbied for tax incentives that match those provided in other countries, pointing out that the UK film industry is given similar support despite being much smaller. However, while tax relief was promised by the previous government, the new Con-Lib coalition moved to scrap those plans.

Trade groups for the UK games industry have worried that the lack of support will push developers and publishers abroad, to areas where economic support is provided.

You can check out our Made in the UK season from earlier in the year for more information on the state of the UK games industry. Let us know your thoughts in the forums.

5 Comments

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proxess 22nd July 2010, 11:26 Quote
This has been going back and forth and back and forth...
Unknownsock 22nd July 2010, 11:30 Quote
Tbh i have no faith in our goverment when it comes to anything digital or about tech.
crazyceo 22nd July 2010, 11:43 Quote
The problem with the previous government was they always talked it up but nothing was ever done to help the developement within this industry. This new government had to prioritise immediately and one of the first things to go was labours plans since by the sound of it didn't promise anything fantastic anyway. If they are talking about it now then maybe a new strategy is on the cards.

The problem as always is this will be a political decision were some will always disagree and some will always agree with the policies put in place.
Yslen 22nd July 2010, 11:56 Quote
<crosses fingers>
leveller 9th November 2010, 18:58 Quote
Just saw a note at the end of the news that there is a feature story on the news at ten about how/why the UK is losing it's development grip. Can only be a good thing.
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