TIGA, the trade association representing the UK games industry, today commented on yesterday’s Government announcements on Corporate Tax Reform and its commitment to introduce a Patent Box to encourage innovation.
Yesterday’s announcement by the Government confirmed the introduction of a Patent Box in April 2013 – a 10% CT rate on profits from patents, designed to create an environment of innovative companies to prosper. The Government also announced a Corporation Tax Road Map and timetable to deliver the reduction in Corporation Tax for large and small businesses with a cut in the main rate from 28% to 24% over the next 4 years and a reduction in the small profits rate from 21% to 20% from April 2011.
Dr. Richard Wilson, TIGA CEO made the following comments:
“TIGA is pleased that the Government is to progress with the Patent Box and we look forward to engaging with the Treasury on our previously announced proposals to reform R&D tax credits.
“Although we welcome the planned reduction in Corporation Tax this will not be sufficient to drive the creative industries forward in general and the video games industry in particular. The fact remains that the only way to drive substantial inward investment into the UK games industry is for the Government to adopt Games Tax Relief. If we really want the UK economy to be open for business the Government needs to be brave enough to look again at our proposals.””