Tax Relief For TV Production Could Be Extended To Video Games Industry
UPDATE: George Osborne has announced that video game developers will receive tax credits alongside high-end TV production. Gamebrit will bring you more details as soon as they are announced.
Reports have surfaced that claim the UK government is considering introducing a tax break for TV production.
The UK trade association for Interactive Entertainment, UKIE, stated in a press release that these reports have encouraged them. It has also praised the government for recognising the role tax relief for the creative industries can play in encouraging their growth. Most importantly for us the UKIE has called on the government to extend the break to the video-games industry.
A break in tax would act like a cash investment allowing an increase in, first and foremost, games development within the UK. The potential growth could have positive repercussions elsewhere, including an increase sales, which would see more money put back into the industry and thus the government.
A current lack of a tax relief has seen UK video-game industries fall behind Canada and France in terms of a global pecking order.
CEO Jo Twist said: “UKIE was pleased to hear reports today of government’s intention to introduce TV production tax breaks and we hope that they will consider introducing a similar scheme for other digital creative industries.
“Tax breaks for the game industry, combined with kids being taught the right skills in schools, would mean that the UK’s interactive entertainment industry would have the right environment to grow – from the grass-roots up as well as from inward investment in existing studios.”
Those sentiments were repeated by Ian Livingstone, the UKIE deputy chair who added: “Today’s report is encouraging news. For many years, the game industry has been very vocal on the topic of production tax credits, campaigning for their introduction to attract foreign investment and create jobs in a sector that the UK has tremendous expertise in.”
News as to whether a tax break has been introduced will be announced on Wednesday 21st when UK chancellor George Osborne announced the next budget.