Australia’s recent approval of a tax credit for the video game industry has reinforced TIGA’s call for a more generous Video Games Expenditure Credit in the United Kingdom.
The industry trade body in the country, IGEA, announced the successful passage of the Digital Games Tax Offset (DGTO) in Australia’s Parliament, providing a 30 per cent tax incentive for developers with projects exceeding AU$500,000.
While Australia celebrates this significant milestone, TIGA, the UK’s trade body for the video games industry, is urging the UK Government to enhance the new Video Games Expenditure Credit. The Chancellor of the Exchequer recently announced a Video Games Expenditure Credit in the UK, set at a rate of relief of 34% on 80% of qualifying expenditure, replacing the previous Video Games Tax Relief.
Recognising the potential benefits of a more generous credit, TIGA has long campaigned for an increase in the rate of relief and/or qualifying expenditure.
TIGA’s CEO Dr Richard Wilson OBE said: “Australia’s new Digital Games Tax Offset demonstrates once again how governments around the world recognise how a more favourable tax regime can foster growth, investment, and innovation within the video game development sector. If the UK increases the generosity of the forthcoming Video Games Expenditure Credit, then we can incentivise more investment, create more high skilled jobs, and generate more economic growth across the country.”
Jason Kingsley OBE, TIGA Chairman and CEO and Creative Director at Rebellion, said: “A more generous credit would incentivise increased investment, stimulate innovation, and attract top talent to the UK’s video game industry. It would support the growth of studios, drive economic prosperity, and solidify the country’s standing as a global centre for video game development.”