Autumn Statement reveals first details of tax breaks structure
Today the UK Government published a written document to support Chancellor George Osborne's earlier Autumn Statement, which reveals a games industry tax-relief rate set at 25 per cent of qualifying expenditure.
An official statement (click here to download) for the Treasury says: "Following consultation on their design, the Government will ensure that the reliefs are among the most generous in the world by offering a payable tax credit for all three reliefs worth 25 per cent of qualifying expenditure."
Tax relief for the creative industries, including film, television and animation, were confirmed in the UK Budget address made in March this year, and are expected to come into affect from April 2013.
"Under these reliefs, qualifying companies will be able to choose between an additional deduction at a rate of 100 per cent of enhanceable expenditure or a payable tax credit at a rate of 25 per cent of qualifying losses surrendered," confirms the statement.
Full details of the workings of the creative industries tax relief will be confirmed on December 11th, the Department for Culture, Media and Sport has confirmed.
At the time of the 2012 Budget, it was stated that the breaks would deliver relief of £15 million in the year covering 2013-to-14, and £35 million in the period from 2014-to-15.
The 25 per cent figure falls roughly in line with TIGA’s proposal to the Government to set a 20 per cent tax relief on production costs for games costing more than £3m to produce and 25 per cent on games costing between £50,000 and £3m.
The Autumn Statement also confirmed an extra £6 million investment in creative industries training.
For a detailed history of the UK tax breaks story, be sure to check out our essential guide.
Image credit: BBC video feed of Autumn Statement