UK video games tax break welcomed as it is expected to save industry £188m
The European Commission has approved tax breaks for the UK computer games industry, ending years of campaigning by the industry body TIGA which claims the decision will bring £188m to developers.
TIGA has battled for a tax break for many years, calling for them to be made with each passing budget, as the industry has witnessed the closure of many development companies over the last five years.
Dr Richard Wilson, CEO of TIGA, said: "Tax breaks for games production will help the UK fight its way back to the forefront of video game development."
Meanwhile, Professor Louis Natanson, head of the School of Arts, Media and Computer Games at Abertay University, also welcomed the news, saying that it put games development on “a level playing field” with the film industry.
“Tax breaks will help to encourage investment in the UK, and provide a firmer foundation as home-grown companies look to recruit, expand and establish themselves as major international players.
“However, as the games industry itself recognises, tax breaks aren’t a one-size-fits-all solution for the many different sized companies in Dundee and across the UK to thrive and succeed.
“Small companies, like those formed by increasing number of Abertay University graduates, face many other problems to getting a company off the ground including getting the right business advice, gathering enough cash to found a business, and then seeking out the business opportunities for contract work, investment and publishing deals.
“What Scotland and the UK need for future economic success is a sustainable games industry ecosystem, which includes tax breaks, industry-relevant education for students, links with active investors and publishers, business and marketing support, and innovation in terms of how games projects raise investment.
“Today is a very positive day for the UK’s games industry, but continued hard work from educators, game developers, industry supporters and government is needed for this high-growth, high-potential industry to reach its full potential,” concluded Natanson.
As a result of the tax break, it is likely to see development studios save up to a quarter, depending on whether they meet the necessary cultural requirements.