Budget:TIGA claims victory over Budget research tax credits announcement
The trade association which represents the UK Games Industry TIGA has claimed that changes to research and development tax credits, following today’s budget, could be worth around £7 million to the industry.
TIGA claims to have convinced Chancellor George Osbourne to improve the existing research and development tax credits for small businesses following three reports and meetings with MPs, HM Treasury and Government.
Dr Richard Wilson CEO of TIGA stated: “This is a decisive victory by TIGA which will benefit not just the UK games industry but also the wider UK economy. TIGA’s proposals for the R&D tax credits will deliver 60%-75% more value to games studios than the current R&D tax credit regime. This could be worth around £7 million to the UK video games industry. This will enable studios to invest more in R&D, generate and retain new IP, and hire more development staff. Reforming the R&D tax credits along the lines proposed by TIGA will help power our high technology industry forwards.”
He added: “The reform of R&D tax credits in today’s Budget is the decisive victory that TIGA has campaigned for. Government Ministers are to be congratulated for backing our proposal. The Labour Party, the SNP, NESTA and the House of Commons Scottish Affairs Committee also deserve full recognition for helping to achieve this crucial measure. TIGA now looks forward to working with the Government and other interested parties on implementing the changes to the R&D tax credits.”
Wilson also highlighted that once again the Government had failed to respond to lobbying for a Games Tax relief for the games sector, a decision he described as ‘dismal’ and one that demonstrated ‘a complete lack of imagination’, which would leave the UK games industry ‘swimming against the tide’ internationally.
“Our key competitors have tax breaks for games production. The UK does not. Competitor countries including Canada are surging ahead while the UK is struggling: between 2008 and 2010 the Canadian games industry grew by 33% while the UK sector declined by 9%,” he explained.