Ukie joins Tiga in call for 30% tax relief

Ukie joins Tiga in call for 30% tax relief
Craig Chapple

By Craig Chapple

September 10th 2012 at 2:55PM

Trade body asks for tax breaks to be available for various studio sizes and business models

Ukie has published its response to the government’s games tax breaks consultation and has called a 30 per cent relief rate to be enacted.

Drawing in feedback from 221 companies from the games industry, as well as 85 non-Ukie members, the trade body has made a number of recommendations to help best benefit developers with the scheme.

The report states that there is no need for a minimum budget threshold for games to qualify for relief, whilst it has urged the government to ensure the new scheme supports all elements of the industry, from small indie outfits to large triple-A studios.

The response has also asked for games tax breaks to recognised multiple business models beyond release, including an allowance for claims on production costs incurred from DLC and iterations.

It has also suggested that there should be a voluntary contribution allowed for companies to invest in talent development and skills.

As well as speaking to a number of developers and studios, Ukie also discussed its response with Tiga, which conducted its own report, to share feedback received by both trade organisations.

“This scheme is a real opportunity to grow all parts of the UK games industry - from small, to medium, to big businesses - and will help people make even more distinctive and innovative games,” said Ukie CEO Jo Twist.

“Having a system that recognises the new innovative business models and production processes in our industry, allowing developers to claim for DLC and continued development, post going-live to the public – gives the UK a real advantage over other countries.

“Introducing a rate of 30% for all games businesses, regardless of their size, is the best possible way to ensure that the scheme gives the UK the level playing field that it needs to become a global games powerhouse.

“We also want to urge government to effectively measure the true size of the games industry. As the recent report from Creative Scotland highlighted, it is crucial that we have accurate data so that we can judge the success of this scheme and other government policies.”