TIGA, the trade association representing the UK games industry, today
met representatives from the Scottish Government’s Department for Culture and External Affairs, Creative Scotland and
Scottish Enterprise to discuss TIGA’s proposals for the establishment of a
Creative Content Fund and Games Tax Relief.
DR Richard Wilson, TIGA CEO, Colin Anderson, MD of Denki and TIGA board
member, and Joe FitzPatrick MSP met with Peter William, Head of Creative
Industries Policy, David Hartley from Scottish Enterprise and Morgan Petrie
from Creative Scotland.
Dr Richard Wilson, TIGA CEO, said:
“We had a very constructive meeting with officials from the Scottish
Government, Creative Scotland and Scottish Enterprise about how to power the
Scottish video game development sector forward.
“TIGA explained how a well-targeted tax break for games development
would effectively reduce the cost of games production, create employment and
enable the sector to compete on a level playing field. At the moment, our key
competitors in Canada, the USA and France have tax breaks for games production
but the UK does not. TIGA also argued for the introduction of a Creative
Content Fund to encourage new studio formation, stimulate the
generation of new IP and co-fund new content development.
“I am very grateful to Joe FitzPatrick MSP for supporting TIGA’s case and
for highlighting the importance of the sector to the Scottish Government.”
Joe FitzPatrick MSP, said:
“We had a very positive meeting today, discussing
Games Tax Relief and TIGA’s proposed Creative Content Fund. These are good ideas and I will continue to
champion the Scottish Video Games development sector
Colin Anderson, MD of Denki and
TIGA board member, said:
“Access
to affordable sources of finance is a constant challenge for creative media
companies, and a significant barrier to growth.
TIGA's portfolio of thoroughly researched, practical proposals such as
the Creative Content Fund and Games Tax Relief is ideally suited to addressing
these issues. It's encouraging to see
the Scottish Government and its related agencies recognising this and showing
leadership in this regard.”
Key features of the CCF:
The CCF could provide funding of up to £100,000 to game developers.
The
CCF should make investment available in the form of matched funding (i.e.
pound for pound) repayable contribution in approved game production
projects.
The CCF would operate on a commercial
basis and so would be entitled to recoup the money from
recipients out of successful sales of those games once they had generated
a certain amount of revenue and over an agreed time period, together with
a defined share of the additional profits. These profits could then be used to augment
the CCF and applied to future projects.
Key features of
Games Tax Relief:
G
ames Tax Relief would cover: any games development businesses
falling within the scope of UK corporation tax that develop a game with a
specified budget and which pass a cultural test.
The tax relief would be calculated and applied in a similar way to
the existing tax relief for British films.
The tax relief is proportionate and designed to help all kinds of
studios – small firms would benefit most and loss-making companies would
also benefit.
Ends
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:
07875 939 643, or email richard.wilson@tiga.org.