Ukie still confident of EC decision despite no Budget announcement on tax reliefs
Ukie highlights other budget announcements relevant to the UK games businesses
Wednesday 19th March 2014 - London, United Kingdom – UK games trade body still optimistic of getting a decision from the EC soon and urges UK government to continue pushing as hard as possible for their introduction
Responding to today’s Budget announcement by Chancellor George Osborne, Ukie CEO Dr Jo Twist said the following about the lack of any announcement on the long-awaited games production tax credits by the Chancellor.
Dr Twist said: “The ongoing delay to the UK games tax relief scheme has been very frustrating for UK developers. Whilst there was not any announcement about the European Commission’s decision in this year’s budget, we continue to be confident that our case is strong and that we will receive word from the EC soon. We know that the Treasury and other UK government departments have worked hard to convince Europe of the case for UK Games Tax Relief, and we will continue to do everything we can to help push tax relief over the finishing line and get this vital scheme in place for UK developers as soon as possible”.
The full Budget document (the Red Book) sets out a small change to the legislation behind Games Tax Relief, in paragraph 2.114, which would be enacted should the relief get clearance. However, the relief remains subject to state aid clearance, meaning that final European Commission approval is still required before it can go ahead.
There was other relevant news for games companies in the Budget however, with announcements of:
• The Seed Enterprise Investment Scheme to be made permanent
• Extra £85 million in next two years in grants to employers to support 100,000 new apprenticeships
• £20 million over 2 years to support degree-level apprenticeships
• Confirmation that Corporation Tax will be 21% in April, 20% from April 2015
• £2,000 Employment Allowance announced last year will come into force in April – reduces Employer National Insurance Contributions
• UK Export Finance will be reformed to support intangible exports, be much more proactive in support of UK businesses, and have its direct lending budget double to £3 billion at the lowest permitted interest rates.
• R&D Tax Credit for loss-making SMEs will increase from 11% to 14.5%
• Enterprise Zone discounts on business rates and Enhanced Capital Allowances will be extended by 3 years
• Double the Annual Investment Allowance for businesses to £500,000 until the end of 2015
• Provide £42 million over 5 years to set up the Alan Turing Institute to lead the world in Big Data and algorithm research
In response, Dr Twist said: “Many of these new announcements are welcome steps which should help further cement the position of the UK as the best place in the world to make and sell games. Helping SMEs to grow more quickly is particularly crucial, and the announcements on SEIS and export support should have a good impact in this regard.
“However, it is Games Tax Relief which will have a real impact in unlocking our sector’s cultural and economic potential, as the government recognised when introducing the scheme. It is vital that we get it in place as soon as possible”.
-ENDS –
Contacts
For all press enquiries, please contact the Ukie press office on T: +44 (0)20 7534 0580 or E: press@ukie.org.uk
About Ukie
The Association for United Kingdom Interactive Entertainment or Ukie (pronounced YOU-KEY) is a trade body that aims to support, grow and promote the whole of the UK’s games and interactive entertainment industry. Founded in 2010 (although formerly known as ELSPA), Ukie’s membership includes all the major UK and global games publishers and the best of UK development talent - from promising start-ups to some of the biggest, most successful studios operating in the UK today.
We also have distributors, academic institutions, new publishers, and media outlets that are integral to the lifeblood of the industry as part of the family.
Ukie works with government to champion a range of issues including age ratings, education and skills, access to finance and protecting intellectual property rights. It also works with the media to ensure true and accurate representation of the sector by raising awareness of the industry’s positive economic contribution and the societal benefits of gaming to policy makers, regulators and consumers.
One of Ukie’s key roles is to support its members by providing them with key market information, promoting careers and offering the business support services, training and best-practice knowledge to enable them to operate most effectively.
We also offer comprehensive events programme to give the games industry access to key information, leading industry figures and give everyone the chance to network. You can see our events programme here http://ukie.org.uk/events
In addition, Ukie compiles weekly, monthly and annual retail charts and sales reports for the UK market.
Website: ukie.org.uk
Twitter: @uk_ie
Facebook: Ukie
Linked in: Ukie
Responding to today’s Budget announcement by Chancellor George Osborne, Ukie CEO Dr Jo Twist said the following about the lack of any announcement on the long-awaited games production tax credits by the Chancellor.
Dr Twist said: “The ongoing delay to the UK games tax relief scheme has been very frustrating for UK developers. Whilst there was not any announcement about the European Commission’s decision in this year’s budget, we continue to be confident that our case is strong and that we will receive word from the EC soon. We know that the Treasury and other UK government departments have worked hard to convince Europe of the case for UK Games Tax Relief, and we will continue to do everything we can to help push tax relief over the finishing line and get this vital scheme in place for UK developers as soon as possible”.
The full Budget document (the Red Book) sets out a small change to the legislation behind Games Tax Relief, in paragraph 2.114, which would be enacted should the relief get clearance. However, the relief remains subject to state aid clearance, meaning that final European Commission approval is still required before it can go ahead.
There was other relevant news for games companies in the Budget however, with announcements of:
• The Seed Enterprise Investment Scheme to be made permanent
• Extra £85 million in next two years in grants to employers to support 100,000 new apprenticeships
• £20 million over 2 years to support degree-level apprenticeships
• Confirmation that Corporation Tax will be 21% in April, 20% from April 2015
• £2,000 Employment Allowance announced last year will come into force in April – reduces Employer National Insurance Contributions
• UK Export Finance will be reformed to support intangible exports, be much more proactive in support of UK businesses, and have its direct lending budget double to £3 billion at the lowest permitted interest rates.
• R&D Tax Credit for loss-making SMEs will increase from 11% to 14.5%
• Enterprise Zone discounts on business rates and Enhanced Capital Allowances will be extended by 3 years
• Double the Annual Investment Allowance for businesses to £500,000 until the end of 2015
• Provide £42 million over 5 years to set up the Alan Turing Institute to lead the world in Big Data and algorithm research
In response, Dr Twist said: “Many of these new announcements are welcome steps which should help further cement the position of the UK as the best place in the world to make and sell games. Helping SMEs to grow more quickly is particularly crucial, and the announcements on SEIS and export support should have a good impact in this regard.
“However, it is Games Tax Relief which will have a real impact in unlocking our sector’s cultural and economic potential, as the government recognised when introducing the scheme. It is vital that we get it in place as soon as possible”.
-ENDS –
Contacts
For all press enquiries, please contact the Ukie press office on T: +44 (0)20 7534 0580 or E: press@ukie.org.uk
About Ukie
The Association for United Kingdom Interactive Entertainment or Ukie (pronounced YOU-KEY) is a trade body that aims to support, grow and promote the whole of the UK’s games and interactive entertainment industry. Founded in 2010 (although formerly known as ELSPA), Ukie’s membership includes all the major UK and global games publishers and the best of UK development talent - from promising start-ups to some of the biggest, most successful studios operating in the UK today.
We also have distributors, academic institutions, new publishers, and media outlets that are integral to the lifeblood of the industry as part of the family.
Ukie works with government to champion a range of issues including age ratings, education and skills, access to finance and protecting intellectual property rights. It also works with the media to ensure true and accurate representation of the sector by raising awareness of the industry’s positive economic contribution and the societal benefits of gaming to policy makers, regulators and consumers.
One of Ukie’s key roles is to support its members by providing them with key market information, promoting careers and offering the business support services, training and best-practice knowledge to enable them to operate most effectively.
We also offer comprehensive events programme to give the games industry access to key information, leading industry figures and give everyone the chance to network. You can see our events programme here http://ukie.org.uk/events
In addition, Ukie compiles weekly, monthly and annual retail charts and sales reports for the UK market.
Website: ukie.org.uk
Twitter: @uk_ie
Facebook: Ukie
Linked in: Ukie
Companies:
UKIE
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