TIGA, the network for games developers and digital publishers and the trade association representing the UK video games industry welcomed today’s news that Video Games Tax Relief has been successfully re-notified to the European Commission. The re-notification extends the State aid clearance of the relief from April 2018 to April 2023.
Please see this link to the European Commission’s website: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_48362
Dr Richard Wilson, TIGA CEO, said:
“Today’s announcement by the EU Commission is excellent news, not just for the video games industry but also for the wider economy. Video Games Tax Relief will continue to promote investment, job creation and business growth in our high technology, high skills, export focused industry.
“TIGA has consistently argued that Video Games Tax Relief is justified on three grounds. Firstly, it enables the UK video games industry to compete on a more level playing field against our overseas competitors who benefit from similar forms of relief. Secondly, the Relief promotes the production of culturally British video games. Thirdly, the Relief encourages economic growth: in the three years before Video Games Tax Relief was announced, the UK’s development headcount declined on average by 3.6 per cent each year. In the four years after the announcement, it grew on average by 7.1 per cent each year.
Jason Kingsely OBE, TIGA Chairman and CEO and Creative Director at Rebellion, said:
“With all the uncertainties around at the moment it’s comforting to have this major asset for the UK games industry confirmed for another five years. This will allow companies involved in the export-focused, highly-skilled and creative pursuit of making games, to plan well into the medium term. This should in turn, increase employment and bring more investment into the sector, and be very positive for the UK trade balance”