Today Tiga will submit its long-awaited report on how the UK could implement a tax credit system
Tiga will today present a comprehensive report to the UK Culture Department that – for the first time – outlines practical steps for implementing a tax credit system across Britain’s game development sector.
The major effort is thought to be Tiga’s last push before the ‘Spring 2010’ general election and, possibly, a whole new government to convince.
The whole set of proposals will today end up in the hands of Sion Simon, the government’s Minster for Creative Industries.
You can read Tiga’s preliminary proposals for yourself by clicking here.
Tiga says its report has also made “an unprecedented case for the cultural value of video games”. This new focus for the group comes after Westminster showed that it was only considering tax breaks for games of a ‘British cultural significance’.
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Tiga CEO Richard Wilson wants the Government to introduce games tax benefits “at the earliest opportunity”.
“The evidence presented today provides a robust argument for the introduction of a cultural tax break for games production,” he said, “which will benefit both the UK games industry and also ultimately the wider economy, providing additional jobs, investment and UK tax revenues.”
The Department for Culture, Media and Sport (DCMS) launched its comprehensive Digital Britain report back in June. Tucked within a single sheet of the 245-page document was a promise that Brown’s government is “committed to work with the industry to collect and review the evidence for a tax relief.”
This promise is widely considered to be the result of an exhaustive lobbying campaign from an inordinarily united UK games industry.
Lord Puttnam of Queensgate – the vice-chairman of the All Party Parliamentary Group on the Computer and Video Games Industry – wrote a Foreword to TIGA’s report.
He said,
“For far too long the UK video games industry has been effectively ‘taken for granted’. To ensure the continuing success of this pre-eminently creative sector, I can only urge the Government to support TIGA’s case for the introduction of a form of Games Tax Relief, as set out in this report.”
Click here for the latest on development tax breaks
Here for the Develop guide to Digital Britain
Here For NESTA’s latest report on tax subsidies
Rob, what's Develop's understanding of the process from here on in? Am I right in thinking any final decision will need European Commission approval? Any idea if that's a quick process?
Hey Fran, we've heard conflicting views on this. Some insist EC approval is necessary, others believe otherwise.
We've contacted the DCMS about this and will come back here with their response.
Cheers Rob. I think the French had to get approval for their system, but I'm not quite sure how long it took - I also wonder if the fact that the French have already led the way in terms of the EU territories on this issue means that any approval would be forthcoming more quickly to the second territory to apply. Time will tell I suppose.
