UKIE, the trade body that represents the video game industry in the UK, says that it feels "pretty confident" that the tax break proposal will be approved by the European Union and that the doubts raised by the EU Commission over taxpayers contributing to the proposed relief will evaporate. Last year, the UK government approved tax breaks for the country's games sector, promising to provide 25 percent tax relief on 80 percent of the budget for qualifying UK-made games. But in April of this year the European Commission put it all on hold to conduct an investigation because it had doubts over whether the relief was needed in the first place, and that the cultural requirements of the tax breaks.
Speaking to Joystiq, UKIE CEO Dr Jo Twist said that she expects the proposal to be approved by the EU Commission despite any doubts it might have. She did express concern on just how long the approval process would take.
"I think we're pretty confident it'll go through," Dr Twist told Joystiq."We know that the [UK] government is 100 percent committed – across all parties, as well, there's 100 percent commitment to get this through. UKIE also approached other creative industries – so film, animation, and TV – and they wrote a letter of support to say 'we want the games industry to have tax credits just like we do now.'"
"We sort of weren't altogether surprised that [the European Commission] did this because the European Union is the European Union, and they have to go through these processes and ask the questions and make sure that they're asking the right questions," she added.
You can catch the rest of the conversation on Joystiq.
At the end of the day, the biggest concern is just how long the EU will hold up tax breaks. As Twist said in the article, it took the EU Commission almost a year to conclude an inquiry into French tax breaks. Obviously the UKIE and UK-based game developers don't want to have to wait until 2014 to get some help from the government.