Tax Relief Supports Over £690 million of UK Expenditure
TIGA, the network for games developers and digital publishers and the trade association representing the video games industry, today said that Video Games Tax Relief was encouraging investment, stemming the brain drain of talented developers, improving access to finance and enabling developers to create and publish their own IP. TIGA made the comments following the publication of Creative Industries Statistics Commentary (HM Revenue and Customs July 2017) and Video Game Tax Relief Evaluation (Ref: HMRC Research Report 459, 20th July 2017). See: https://www.gov.uk/government/statistics/creative-industries-statistics-july-2017 and https://www.gov.uk/government/publications/video-game-tax-relief-evaluation
Dr Richard Wilson, TIGA CEO, said:
“TIGA is delighted to see that Video Games Tax Relief (VGTR) is proving such a success, boosting the UK gaming sector which is one of the shining stars of the creative industries. Since we successfully worked with the Government to implement VGTR in 2014, it has enabled 295 video game productions to claim the Relief, supporting over £690 million of UK expenditure. It has enabled developers to hire additional staff to ensure that UK games development continues to be of the highest quality in the world.
“VGTR enables the UK video games industry to compete on a more level playing field against our overseas competitors who also benefit from tax incentives. It has helped to stem the brain drain of talented developers leaving the UK for other jurisdictions, improved access to finance, encouraged investment into the UK and enabled developers to create and publish their own IP.
“Yet there is more that can be done to power the sector forward. The Government could consider raising the level of VGTR to 27.5 or even 30 per cent; work with the industry to encourage more developers to apply for VGTR; introduce a Games Investment Fund to support original IP development and improve access to finance; and ensure that studios can continue to access highly skilled games developers all over the world after Brexit. The UK video games industry is doing well and we have the potential to achieve much more.”
Video Games Tax Relief
- There were 90 video games completed in 2016-17 that claimed Video Games Tax Relief (VGTR), with UK expenditure of £163 million.
- Since VGTR was introduced in April 2014, there have been 295 video game productions claiming VGTR, supporting over £690 million of UK expenditure.
- Each video game may make several claims during the production process. In 2016-17, £73 million of VGTR was paid in response to 280 claims.
- Almost £119 million has been paid out to 420 claims since the introduction of VGTR in April 2014.
Notes to editors:
TIGA is the network for games developers and digital publishers and the trade association representing the video games industry. Since 2010, TIGA has won 25 business awards and commendations and has been successfully accredited as an Investors in People organisation three times. TIGA focuses on three sets of activities:
- Political representation
- Media representation
- Business services
This enhances the competitiveness of our members by providing benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities. It also means our members’ voices are heard in the corridors of power and positively represented in national, broadcast and UK video games trade media.
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Tel: 0845 468 2330
For further information, you can also contact: Dr Richard Wilson, TIGA CEO by email: firstname.lastname@example.org