UK tax break announced in 2012 Budget speech
by Ben Abbott at 6:33 pm on Wednesday, 21 March 2012

Chancellor of the Exchequer George Osborne has announced that the UK games industry is to receive tax breaks similar to that of the country’s film industry in his 2012 Budget speech.

The reaction to this decision - previously abandoned by the Coalition government’s June 2010 Budget - has been incredibly positive from national developers. It should provide assistance to a business that has seen recent studio closures in Britain whilst simultaneously helping stem the flow of workers to the likes of Canada, which already has tax break policies in place. Dr Richard Wilson (CEO of TIGA, the trade representative for the games industry which fought for the move) said that their research indicates “Games Tax Relief should generate and safeguard: 4,661 direct and indirect jobs; £188 million in investment expenditure by studios; increase the games development sector's contribution to UK GDP by £283 million; generate £172 million in new and protected tax receipts to HM Treasury, and could cost just £96 million over five years”.

Jason Kingsley, CEO and Creative Director of Rebellion and TIGA Chairman, stated that the move “will save jobs and companies, promote growth, build financial confidence and bring in much needed export income from around the world. It is exciting that they have made such a positive move and we look forward to working with them on the details of implementation.” Meanwhile, Karl Hilton of Crytek has said that this “is the right decision for the future of the UK games industry and consumers across the world who enjoy playing British made games”.

Source: TIGA

Photo: Man vyi
- Ben Abbott

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