UK Brings Out Tax Incentive Policy to Video Games
22 Mar, 2012
Yesterday, representatives for the UK government announced plans to bring tax relief programs to its indigenous video game development industry. The government has stated that it wants to make Great Britain “Europe’s technology centre”. The move comes around two years after the last concentrated effort to add tax incentives to game development, when the Labor Movement promised industry tax relief in March of 2010, a proposal shot down that June.
“Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry,” praised Dr. Richard Wilson, CEO of the UK industry trade group TIGA, “Our research shows that Games Tax Relief should generate and safeguard: 4,661 direct and indirect jobs; £188 million ($297.9 million) in investment expenditure by studios; increase the games development sector’s contribution to UK GDP by £283 million ($448.4 million); generate £172 million ($272.6 million) in new and protected tax receipts to HM Treasury, and could cost just £96 million ($152.1 million) over five years.”