Video games body welcomes Osborne’s tax relief
TIGA, the UK video games trade association has welcomed the tax relief given to game developers in last week’s Budget.
The body representing the games industry thanked the Westminster All Party Computer and Video Games Industry Group for encouraging the Chancellor to take the steps.
A letter from the group to the Chancellor, outlining the case for tax credits, was signed by Chris White MP (Conservative), Justin Tomlinson MP (Conservative), Jim McGovern MP (Labour), Luciana Berger MP (Labour) and Stewart Hosie MP (Scottish National Party).
The letter stated: “To maintain its status as a world-class games development location, to continue to maximise tax revenues and to attract investment into the UK, the UK Coalition
“Government needs to implement a relatively modest but significant fiscal intervention, a tax relief for games development.”
TIGA has estimated the tax relief will increase the industry’s contribution to UK GDP by £283m, generate £172m in new and protected tax receipts to HM Treasury, and could cost just £96m over five years.
TIGA CEO Dr Richard Wilson said: “The huge effort and support from those inside and outside the videogame industry has been instrumental in helping TIGA to achieve the goal of tax relief for developers in the UK.
“I would like to thank all of those MPs who have backed the case and enabled us to take it to the heart of Westminster.
“I would especially like to thank all of the members of the Westminster All Party Computer and Video Games Industry Group and particularly the eight signatories of this letter: these MPs have really fought for the interests of the UK games development sector.”
Guillaume de Fondaumière, Chairman of the EGDF, commented: “If you consider the pace at which studios were closing down and talents relocating outside of Europe in the past few years, I think it is not exaggerated to say the UK games sector was facing a tangible risk of collapsing.
“I’m convinced that other EU countries will now follow the move, creating a true dynamic that will propel Europe back to the top. Only together can we beat tax heavens such as Canada.”