Mar 22, 2012

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UK to Give Tax Credits to Game Developers

UK to Give Tax Credits to Game Developers

Yesterday the UK gaming industry got great news after the Chancellor of the Exchequer (the equivilant to the U.S. Secretary of the Treasury) announced that the government would give tax credits to UK video game developers.

“UK developers have been competing on an uneven global playfield,” said Andrew Eades, CEO of UK developer Relentless Software in a statement released by The Independent Game Developers Association (TIGA). “Today’s decision by the government to back TIGA’s tax break campaign will help ensure that we can remain competitive in the global market.”

The government previously cancelled plans for a gaming industry tax break back in 2010, but after some developers had to close their studio the government had to rethink this plan. Critics have said that the decision to not give tax credits have also caused the UK to lose a competitive edge internationally and some of the best talent in the UK are going to other countries to seek jobs.

TIGA, a UK video game lobbying group, claims that the new tax credits could help save thousands of jobs and $298 million in investments, contributing an estimated $448 million to the UK GDP. However, since it is a lobbying group these numbers probably aren’t the most accurate.

The proposed tax credits will go into effect next April and as of now, there is no word on how extensive these credits will be.

[Source: Arstechnica]