Thursday, 10 December 2009

No Tax Break For UK Games Industry

Surprisingly the much called for tax break for the UK games industry will not be granted. Alistair Darling’s pre budget report will not include measures to aid the declining industry, an industry which currently generates more revenue for the economy than the government-aided film industry.

In July the government had committed itself to working closely with the industry to review and assess the financial situation and development in the sector, though clearly stating it would need to balance any aid in regards to unfair competition and value for tax payer’s money.

This is of course in contrast to the UK’s international competitors who enjoy highly competitive tax breaks like those in France and Canada. It has proven value for money in those countries and the prevalence of the gaming industry and growth in gaming are irrefutable when considering where tax breaks should be implemented.

TIGA have stated that failure to introduce such tax breaks would result in further decline which is evidenced by the UK’s drop in the league table of countries (in the context of game developing). However not all is bad news as the government is soon to inject a base sum of £10 million into a centre in Dundee Scotland which is expected to create more companies and jobs in the gaming sector. However if TIGA have stated the necessity for tax breaks, an injection of funds would mean coming at the situation from a different angle, and not necessarily the one that it needs to come from.

Source: TheGuardian

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