'A decisive victory by Tiga', claims Richard Wilson
After the UK Government announced it would raise R&D tax credits by 200 per cent in today's Budget, games industry trade body Tiga has claimed the 'decisive victory' could be worth upwards of $7 million for developers.
The size of the raise is in line with Tiga's recommendations to the Government one month ago.
“This is a decisive victory by TIGA which will benefit not just the UK games industry but also the wider UK economy," said the organisation's CEO Richard Wilson. "TIGA’s proposals for the R&D tax credits will deliver 60-to-70 per cent 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."
Wilson also described the lack of games tax releif in today's budget as a 'dismall decision' that: "displays a complete lack of imagination and one which will leave the UK video games industry swimming against the tide internationally."
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TIGA should show the government how Games Tax Relief would bring more money into the economy, surely they will be better understood by the government that way.
MR_K: The problem is, they can't show how it would bring more money into the economy... because they can't prove it would.
They could probably prove how it would bring more money into the back pockets of the CEO/Management, but that wouldn't go down too well, I shouldn't think.
No amount of tax breaks is going to turn this dump of a country into Canada. No amount of tax relief is going to turn a badly managed development studio, into a good one.
The industry has survived for long enough without tax breaks, if it no longer can, then maybe it is no longer a viable business concept... So the business either needs to adapt, or close, like every other business.
But whatever needs to happen, TIGA needs to stop constantly whining about being hard done to, get off its ass, and DO SOMETHING instead.
sounds like TIGA isnt the only whining armchair critic in town ;)
> No amount of tax breaks is going to turn this dump of a
> country into Canada
Do you suppose then, that the cost of development has absolutely no affect on the risk associated with new developments, and in turn the money invested into new IP, and marketing?
Can TIGA show that tax breaks will bring more money in? Well they can easily show the amount of money profitable games brings in, they can show how much additional workforce in the gaming industry could make the UK games industry more competitive. Even better if they can draw colourful graphs and charts.
If the games industry was operating at a loss, by all means, drop it. But that's not the case. Tomb Raider, Grand Theft Auto, and so many profitable IP's were birthed right here in the United Kingdom. Surely investment is needed in this area, and it should be easier for games companies to surface and operate; what do you say?
