Member Article

European Commission gives thumbs up for UK video games tax break

The European Commission has approved tax breaks for the UK video games sector following an investigation into whether state aid could be provided.

The UK sector employs around 9,000 people and sales of video games in the UK was estimated to have reached £2.19 billion in 2013.

New measures will take effect from April 1 and will make companies eligible for a payable tax credit worth 25% of qualifying production costs.

Similar relief schemes in the film industry, in 2011 and 2012, are estimated to have delivered more than £200 million of support for the sector.

Dr Richard Wilson, CEO of TIGA, the association for games developers and digital publishers, said: “This is a coup for the government, a superb decision by the EU Commission, and magnificent news for the UK video games industry. TIGA has been campaigning for Games Tax Relief for seven years because video Games Tax Relief will create jobs, boost investment and enable the production of more British video games.

“Tax breaks for games production will help the UK fight its way back to the forefront of video game development. Games Tax Relief will benefit a highly skilled, high-tech, R&D intensive and global export-focused industry.

“TIGA now looks forward to working with the government and other interested parties on the implementation of Games Tax Relief to ensure the full benefit of this landmark moment in the history of our industry.”

This was posted in Bdaily's Members' News section by Tom Keighley .