Since Games Tax Relief was introduced on April 1, 2014, the UK government has supported £417 million ($620 million) in development costs from 135 claims.
Tax Relief was brought in after much campaigning by trade bodies such as UKIE and TIGA, and allows British developers to claim a deduction in their taxable profits, thereby lowering production costs.
In light of the program’s success, and with the UK’s exit from the European Union (Brexit) on the horizon, TIGA has called for the UK Government to reform and improve the system to help local game devs remain competitive.
For starters, TIGA wants the Government to consider ripping the level of tax relief from 25 to 30 percent, while it has also suggested that the cultural test — which determines whether a game is “culturally British” — should be scrapped completely.
“Games Tax Relief enables the UK video games industry to compete on a more level playing field against our overseas competitors. It is also increasing investment and creating jobs in our high technology, high skilled, high export sector.” Said TIGA CEO, Dr. Richard Wilson.
“Creating a favourable tax system which enables the UK to compete effectively, which attracts investment and which creates jobs is a key aspect of an industrial strategy. Video Games Tax Relief is achieving these important goals.”
You can find out what game developers themselves make of Brexit by checking out our recent roundtable.
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2016