Following the news that the UK government has announced tax relief for creative industries, including games, Richard Wilson CEO of trade body TIGA, is in an understandably enthusiastic mood.
"Now that we've got it, we're going to guard it like the crown jewels," he told PocketGamer.biz, of the scheme TIGA has been lobbying for much of the past decade.
Two years to make hay
As revealed by the UK Treasury, the tax break will initially run from 2013 to the next election in 2015.
The Treasury calculates up to £50 million ($79 million) could be handed back to companies over that two year period.
Wilson reckons that if game companies make the most of the initiative, however, its worth to the industry could be more.
"There's no cap on the similar film tax credit scheme and I don't believe there's a cap on this. The £50 million figure is indicative of what the Treasury thinks it will cost," he explains.
TIGA's research, prior to the announcement, calculated such a scheme could generate up to £172 million for the UK government in terms of protecting tax receipts from existing companies and encouraging future growth.
This figure assumed the scheme would run for five years, costing the Treasury around £96 million in the process.
Time for exploitation
Of course, there's plenty of detail still to be worked out, including ensuring the relief doesn't break European Union competition rules.
But Wilson is fired up to make the most of the opportunity.
"We have to make sure all UK game companies know how to use it so they can exploit it and use the money to invest in their businesses," he says.
He says that the way the tax relief is structured means all UK game makers will be able to use it, as long as their titles pass a cultural test.
Indeed, it seem that it will be available whether games are profitable or loss-making. Although, cashflow-wise, companies will receive the majority of the relief - whether in terms of reduced corporation tax for a profitable game, or a cheque from the government for a loss-making one - in the tax year when the game is released.
Interview
Contributing Editor
A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.
Related Articles
Top Stories
News
May 28th, 2024
PocketGamer.biz Podcast - ustwo games’ María Sayans on the sustainable strategy behind Monument Valley
Feature
May 28th, 2024
Hot Five: Disney x Fortnite, Sega’s sonic speed, and a potential Keywords Studios buyout
Feature
May 27th, 2024
Case study: How Supercent’s games made it to the top in a stagnating hypercasual market
Events
Unreal Fest Gold Coast 2024 | Australasia | May 29th |
For The Win 2024 | Europe | May 29th |
Indie Craft K-Game Festival 2024 | Europe | May 31st |
Indie Game Fest & Indie Campus 2024 | Europe | May 31st |
Game Access Conference 2024 | Europe | May 31st |
GDCy Fest 2024 | May 31st | |
GameSummit Summer 2024 | Jun 1st | |
BostonFig Online 2024 | Jun 1st |