TIGA,the trade association representing the games industry, said today that games
worked on by developers but which are cancelled by traditional publishers
before the project is complete should in principle be eligible for Games Tax
Relief.
TIGA research in 2011 showed that 22
per cent of UK developers have had publishers cancel a game before it is
completed.
Dr Richard Wilson, TIGA CEO, said:
“Some publishers have been known to leave studios high and
dry by obliging them to maintain teams of developers for months on end, only
for them to finally cancel projects. This can have damaging repercussions for
the studios in question.
“Just as some expenditure on unreleased films qualifies for
film tax relief, so cancelled game projects should in principle be eligible for
Games Tax Relief. This is consistent, fair and reasonable. Provided that the
game in question would pass the cultural test and is demonstrably intended for
release then it should in principle be eligible for Games Tax Relief.”
Jason Kingsley OBE, TIGA Chairman
and CEO and Creative Director at Rebellion, said:
“Games Tax Relief is designed partly to promote the creation
of new content. By enabling developers to claim Relief on cancelled projects,
the viability of studios will be enhanced. Studios will have more confidence to
develop and pitch new IP to external publishers, or experiment with more direct
to consumer business models. TIGA will be contacting Government officials to
emphasise these issues and to seek clarity of guidance on these points.”
TIGA
has proposed to the Government that:
a) all work involved in the Pre-Production
phase onwards should qualify for Games Tax Relief. This involves work on a
Technical Design document (which analyses the programming and technical issues
involved in making the game) and a Games Design document (which is analogous to
the script in a film production and includes a budget for the game, sales
estimates and a target platform);
b) all work involved in the production of a
playable prototype onwards should also qualify for Games Tax Relief. The
production of a playable prototype acts as a functioning working model for the
eventual game and addresses the key technical and design issues of the game,
and so should qualify for Games Tax Relief, together with expenditure accrued
after this phase.
Notes
to editors:
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. Since 2010, TIGA has won 14
business awards and has been nominated a finalist for 16 other awards.
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:
07875 939 643, or email: richard.wilson@tiga.org.