UK Budget Includes Tax Relief for Game Developers

A good day for the videogame industry continues as UK developers are one step closer to realizing tax relief, following news that the Labour Party budget includes such a provision.

The tax relief would be very similar to that which the film industry currently operates under, writes Develop. The budget report stated, “The Government announces that, following consultation on design, it will introduce a tax relief for the UK’s video games industry, subject to state aid approval from the European Commission.”

Game industry group TIGA, who has been dogged in its lobbying efforts for tax relief, called the news “a decisive decision,” and said that tax relief “would be good for the UK games industry, good for UK consumers and good for the wider UK economy.”

TIGA CEO Richard Wilson stated:

For Games Tax Relief to be announced in the Budget is the decisive breakthrough that TIGA has campaigned for. Ministers have made the right decision at the right time for the right industry. Government Ministers are to be warmly congratulated for their visionary decision.

TIGA now looks to the Opposition parties to give their full support to Games Tax Relief in the Finance Bill.

To qualify for the tax breaks, TIGA said that games would need to pass a cultural test, which would involve “scoring against criteria of European heritage and game locations, languages, innovation, narrative, and location of development and key development staff.”

Philip Oliver, the CEO of Blitz Games Studios, offered TIGA a pat on the back, saying, “TIGA has worked tirelessly to raise the profile of our industry among Government and Parliamentarians. Today’s decision is proof that this hard work has paid off.”

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  1. 0
    State says:

    You would have to be very naive to vote for a political party on the basis of one small tax break. I know that the arts and media industry will receive a lot of focus now as there is little manufacturing in the UK so they have to look at other sectors apart from the finance industry (which is affected the most by the economy) to provide security and growth for the economy.

  2. 0
    DarkSaber says:

    "Not unless you work in the industry,"

    And how many of the regulars round here do you think THAT applies to? 3, maybe 4 people? It would certainly explain why no-one ever gives a damn enough to comment on articles like these when they crop up.

    It’s not like there is even anything to discuss, and is it really better to get 40 comments all saying "This is good" instead of people assuming the fact it’s good speaks for itself.

    P.S. I was a troll BEFORE Dennis left, as many will attest to. You’d know that too if you weren’t as observant as a piece of pocket lint.


    I LIKE the fence. I get 2 groups to laugh at then.

  3. 0
    Magic says:

    Everyone is indeed welcome to their opinion, but the news is very important to us in the UK games industry.

    As for whether it’ll affect my vote in the election, I’m unsure. I wouldn’t be voting with confidence in Labour if I did.

  4. 0
    DarkSaber says:

    GamePolitics: Where news about tax breaks for game developers is just as boring as news about tax breaks for anyone else.


    I LIKE the fence. I get 2 groups to laugh at then.

  5. 0
    Magic says:

    Hard to believe it’s finally been announced, particularly after last December where, if I recall correctly, Darling effectively said ‘no’ to tax relief for the industry.

    I’d like to see what Ed Vaizey has to say (and potentially offer) too!

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