UK Games Body Responds to US State Tax Break
Calls on UK government for more support
Richard Wilson, CEO of Tiga
UK games developers body, Tiga, has responded to the recent granting of tax breaks to the games industry in the southern state of Georgia* in the USA. TIGA's CEO, Richard Wilson, has taken the opportunity to call on the government once again to introduce similar tax breaks in the UK, as well as better education for prospective industry workers and light regulation.
In a statement, Wilson said:
The 2008 Entertainment Industry Investment Act in Georgia allows games companies over there to get a 20% tax credit, with a further 10% offered if an animated Georgia promotional logo is included in the finished product.
The British government is more interested in challenging existing tax breaks, however. The government is currently investigating the Canadian tax scheme for games via the European Commission and says that it is examining a similar scheme in France.
APOM (France's games trade body) says it investigated Canadian tax breaks and the possibility of challenging them through the World Trade Organisation several years ago. Having looked into the Canadian scheme, however, it decided that challenging it was not feasible. The French government has since gone on to create a similar scheme.
* See Gamepolitics for details.
In a statement, Wilson said:
“Georgia’s introduction of games development tax breaks illustrates once again that other state and national governments are competing to create the most hospitable environment for games production. If the UK Government wants to see a thriving video games industry in this country, then it must create a more favourable taxation system, keep the regulatory burden on business relatively light and work to increase the supply of suitably qualified graduates.
“The UK games development sector continues to be a world beating industry, but we cannot afford to ignore the heavily subsidised competition. The playing field continues to be tipped against UK games developers. Our position as a leading player in the development of video games is at stake.”
“The UK games development sector continues to be a world beating industry, but we cannot afford to ignore the heavily subsidised competition. The playing field continues to be tipped against UK games developers. Our position as a leading player in the development of video games is at stake.”
The 2008 Entertainment Industry Investment Act in Georgia allows games companies over there to get a 20% tax credit, with a further 10% offered if an animated Georgia promotional logo is included in the finished product.
The British government is more interested in challenging existing tax breaks, however. The government is currently investigating the Canadian tax scheme for games via the European Commission and says that it is examining a similar scheme in France.
APOM (France's games trade body) says it investigated Canadian tax breaks and the possibility of challenging them through the World Trade Organisation several years ago. Having looked into the Canadian scheme, however, it decided that challenging it was not feasible. The French government has since gone on to create a similar scheme.
* See Gamepolitics for details.
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