Jul 19, 2013

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UKIE Still Confident About UK Games Tax Proposal Going Through

UKIE Still Confident About UK Games Tax Proposal Going Through



The Association for UK Interactive Entertainment, or “UKIE”, has stated that they are “pretty confident” about the approval of the tax break for UK-developed game studios, despite doubts raised by the European Commission.

The proposal was approved last year, but was put on hold over concerns of whether it is necessary, and whether it would boost the industry or not.

If passed, the tax break would provide a 25% tax relief on the 80% of UK-based developer’s budgets.

Dr Jo Twist, CEO of UKIE, told Joystiq that they were pretty confident:

“We know that the [UK] government is 100 percent committed – across all parties, as well, there’s 100 percent commitment to get this through. UKIE also approached other creative industries – so film, animation, and TV – and they wrote a letter of support to say ‘we want the games industry to have tax credits just like we do now.’”

However, Dr Twist was not surprised by the European Commision’s actions, “did this because the European Union is the European Union, and they have to go through these processes and ask the questions and make sure that they’re asking the right questions.”

The potential for a protracted process can be a little confusing:

“It’s kind of an unknown quantity because it depends if the commission comes back with more questions,” Dr Twist says.  “And because you have this set number of days in which the responses have to be in by, it can kind of drag on. But hopefully it won’t.”

Dr Twist told Joystiq that the commission’s questions were centered around showing where the failure between supply and demand is for UK-made games with a British or European identity.

“We think there is a market failure in people being able to make games and take the risk in making games that might be reflecting a European culture, because a lot of games are commissioned or greenlit or made to appeal to as wide an audience as possible, and particularly the huge markets in the past, which have been Asia and America. “

Dr Twist would rather go on to tell them that:

“They wanted us to show how where you made the game, actually your physical location and context in which you make the game, and the nationality of the people who make the game and their backgrounds, actually make a difference to the end product. Games, we said, are not made in a cultural vacuum. Every coder, programmer, artist, designer, director, everyone involved in making that product brings a little bit of themselves to that product. Identity matters in creating anything. So we really wanted to show the commission that it does matter that a game is made in the UK by UK residents, or is made in Europe, and has that European sensibility.”

The full response to the European Commission produced by UKIE can be found here

[Source: Joystiq]