First unveiled by UK Chancellor of the Exchequer George Osborne as part of his 2012 budget back in March, today saw the Government peg the forthcoming Games Tax Relief at a level of 25 percent.
Osborne's statement, now published in full, says the figure was settled upon after a round of consultation, with the relief standing as "among the most generous in the world".
The statement goes on to confirm that, along with tax breaks for animation and television production, the Government will offer a "payable tax credit for all three reliefs worth 25 per cent of qualifying expenditure."
Powerful player
Reaction to the 25 percent figure has been swift, with trade association TIGA claiming it will "provide a powerful boost to the creative industries."
"Tax breaks for games production will ensure that the UK remains a world leader in the high technology video games development industry," said TIGA CEO Dr. Richard Wilson.
"A single 25 per cent level of relief will be simple to administer and economically impactful. Yet we will have to monitor the actions of our competitors: the province of Quebec in Canada already boasts a 37.5 per cent level of tax relief.
"Tax breaks for the creative industries will boost production in games development, animation and high end TV production. They will contribute to a re-balancing of the UK economy away from an over-reliance on public sector employment and financial services towards highly skilled, export focused industries."
Skills investment
The statement also makes provisions for the Government to match industry contributions to the Skills Investment Fund which invests in training procedures and assessment for the benefit of the TV, film and games industries of up to £6 million during the course of the next two years.
"The provision of match funding for training and development in the creative industries could enhance productivity," concluded Wilson.
"It could also help to promote more sustainable companies, particularly if managers from small and medium-sized enterprises can draw on the funds to develop the vital business and strategic skills necessary for achieving sustained growth."
For its part, trade association UKIE also welcomed the news, though claimed there needs to be "proper scrutiny of the full draft legislation of how the new tax relief scheme will work" when it's made public.
'Positive step'
"This first detail of the tax relief seems a positive step for our members and the wider industry," added UKIE CEO Jo Twist.
"Whilst we called for a 30 percent rate of relief for the scheme, UKIE was nonetheless pleased to see the rate set at 25 percent, giving the games sector parity with other UK creative industries.
"We're also delighted that the Chancellor has recognised the need to ensure the long term future of the UK games industry by introducing a skills fund that the games sector can access.
"We'll be working with Government and Creative Skillset to make sure that this extra element adds real value to UK games businesses."
Also announced within Osborne's statement was the news that investment in UK Trade & Investment (UKTI) is to be increased by 25 percent, while corporation tax is to be further reduced by 21 percent by 2014.
[source: HM Treasury (PDF)]
News
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.
Related Articles
Top Stories
News
12 hours, 14 minutes ago
Nintendo releases first official statement on "the successor to Nintendo Switch"
News
12 hours, 43 minutes ago
Microsoft closes Mighty Doom dev Alpha Dog, Arkane Austin, Tango Gameworks and more
News
12 hours, 59 minutes ago
Nintendo made $10.8 billion in FY24 with mobile and IP income up 81.6%
Feature
May 7th, 2024
Mobile Mavens: The industry has its say on Squad Busters ability to draw in “untapped audiences” with its “influence from a range of genres”
Feature
May 7th, 2024
Hot Five: Supercell’s Squad Busters supremacy, Brawl Stars bounces back, and a games industry journey at King
Feature
May 7th, 2024
April 2024 mobile game charts: Call of Duty: Warzone Mobile loses launch momentum and Brawl Stars’ astronomical rise
Events
Valencia Indie Summit 2024 | Europe | May 16th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Israel Mobile Summit 2024 | Middle East | Jun 6th |
WN Conference Istanbul 2024 | Jun 11th | |
DevGAMM Vilnius 2024 | Europe | Jun 14th |
Develop: Brighton 2024 | Europe | Jul 9th |
Mobidictum Meetup Barcelona September 2024 | Europe | Sep 1st |
Pocket Gamer Connects Helsinki 2024 | Nordic | Oct 1st |