TIGA Renews Call for UK Government to Improve R&D Tax Credits

By October 28, 2011 Press Releases

CBI
Report Echoes TIGA Proposal to Improve R&D Tax Credits

TIGA, the
trade association representing the UK games industry, welcomed the
Confederation of British Industry’s (CBI) recommendation – which echoes a TIGA
proposal – that HM Treasury should consider expanding the scope of the R&D
tax credit by allowing all aspects of design to be included in the small
companies’ R&D tax credit. The CBI made the recommendation in Future Champions: unlocking growth in the
UK’s medium-sized businesses.

 Dr Richard Wilson,
TIGA CEO, said:

“TIGA has been
arguing that a good way to help the UK games development sector specifically
and the high technology sectors generally is to expand the scope of the R&D
tax credits. TIGA has called on the Government to extend the scope of the
R&D tax credits to cover design costs, IP protection costs and premises
costs. This would effectively provide games development studios and other high
technology businesses with more generous tax relief, thereby enabling
businesses to engage in more R&D, to grow their businesses and expand
employment.

 

“TIGA therefore
welcomes the CBI’s call for the Government to examine the case for extending
the scope of the Small Firms R&D tax credit to cover all aspects of design.
I hope that other large business organisations including the Institute of
Directors, the Federation of Small Businesses, the British Chambers of Commerce
and the Forum of Private Business will also support this idea and begin to make
the case to the Coalition Government.

 

“The Coalition
Government should also look at the case for expanding the scope of the R&D
tax credits to cover IP protection costs and premises costs associated with
R&D expenditure.”

 

Mark Gerhard, TIGA board member and CEO of Jagex,
said:

 

“The UK game development sector
is a high technology sector par excellence. However, our industry could be
growing faster, creating more jobs and undertaking more R&D if the existing
R&D tax credits were better configured. Design is a crucial aspect of
R&D. It is time that this was reflected in the R&D tax credits.”

 

TIGA proposed a series of reforms to the R&D
tax credits in Enhancing Research
and Development Tax Credits (November 2010) and Powering
a High Technology Recovery: Improving R&D tax Credits (March 2011).
Both reports are available from the TIGA website.

 

 

 

Ends

Notes to editors:

About TIGA:

TIGA is the trade association representing the UK’s games industry. The
majority of our members are either independent games developers or in-house
publisher owned developers. We also have games publishers, outsourcing
companies, technology businesses and
universities amongst our membership. In 2010 TIGA won two business
awards including ‘Trade Association of the Year’ from the Trade Association
Forum. In 2011,

TIGA won six business awards including ‘Trade Association of
the Year’ from the Trade Association Forum and ‘Outstanding Organisation’ from
the Chartered Management Institute.  Richard Wilson won the ‘Leadership
Award’ from the Trade Association Forum and the ‘Outstanding Leader’ award from
the Chartered Management Institute. TIGA is an Investors in People organisation.

TIGA's vision
is to make the UK the best place in the world to do games business.  We
focus on three sets of activities: political representation, generating media
coverage and developing services that enhance the competitiveness of our
members.  This means that TIGA members are effectively represented in the
corridors of power, their voice is heard in the media and they receive benefits
that make a material difference to their businesses, including a reduction in
costs and improved commercial opportunities.

For further information, please contact Dr
Richard Wilson, TIGA CEO on 07875939643: or email richard.wilson@tiga.org;

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