- New figures released by BFI show that 90 new games received GTR certification in H1 2016 with a total budget of £113m.
- New stats follow recent HMRC figures showing GTR has inspired nearly £½bn spend by UK games industry
London – 04 August, 2016 – TIGA, the independent games association, today applauded the impact of Games Tax Relief (GTR) following the publication this morning of new statistics from the BFI which show that in the first half of 2016 it supported the creation of 90 games, with budgets totalling £113m and a UK/EEA spend of £99m. UK/EEA spend was 88% of the total budget.
Games Tax Relief effectively reduces of the cost of games development. It was implemented after a seven year campaign lead by TIGA, and has supported the creation of 178 new games in the last 12 months with budgets totalling of £643m. UK/EEA spend constituted 86% of this, at £554m.
Dr Richard Wilson, CEO at TIGA, said, “These promising stats come just two weeks after HMRC figures proved the tremendous contribution that GTR has made, not just to the UK games industry, but also to the UK economy. We are thrilled to see the effects of GTR but need to make sure this great UK games industry renaissance continues. We now need to build on this momentum by making GTR even more effective, looking at the level of the relief, examining the cultural test and continuing to ensure we can access highly skilled and creative talent to work in the industry.”
Jason Kingsley OBE, Chair of TIGA and CEO at games developer Rebellion, said, “The UK games industry is a real beacon of business. As a sector, Games and Software is worth more to the UK economy than film, TV and music combined, and we now have the proof that Games Tax Relief is making a huge difference to games companies of all sizes. Yet we can’t be complacent, and need to ensure we maintain a competitive business environment for a vibrant sector of UK business.”
In the light of its success, TIGA has called on the Government to retain and improve Games Tax Relief. The Government could consider increasing the level of tax relief from 25 to 30 per cent to ensure that the UK’s relief remains ‘best in class’.
The Government might also consider reforming or removing the cultural test currently required for games developers to qualify for GTR. The cultural test was introduced partly to promote the production of culturally British video games and partly to ensure compliance with EU State Aid rules which permit support for economic sectors on cultural grounds.
ENDS
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About TIGA:
TIGA is the non-profit trade association representing the UK’s games industry. Its members include independent games developers, in-house publisher-owned developers, outsourcing companies, technology businesses and universities.
TIGA’s vision is to make the UK the best place in the world to do games business. It does this through Government lobbying and maintaining a voice in the corridors of power at both the Westminster and Scottish parliament.