TIGA Delivers Game Tax Relief in the Budget

March 24, 2010

TIGA, the trade association representing the UK games industry, said today that the Government’s announcement that it intends to introduce a sector specific Games Tax Relief for the UK video games industry was a decisive breakthrough. TIGA’s Games Tax Relief would be good for the UK games industry, good for UK consumers and good for the wider UK economy.

Dr Richard Wilson TIGA CEO stated:

“This is an inspired decision. In backing TIGA’s Games Tax Relief the Government has chosen the future over the past, growth over decline, success over failure. Games Tax Relief will increase employment, investment and innovation in the UK video games sector. Our research shows that Games Tax Relief over a five year period should create or protect 3,550 graduate level jobs, increase or safeguard£457 million in development expenditure and encourage developers to adopt new business models and create new Intellectual Property. Games Tax Relief will ensure that the UK remains a world leading developer of video games. Games Tax Relief is good for the UK video games industry, good for UK consumers and good for the UK economy.

“For Games Tax Relief to be announced in the Budget is the decisive breakthrough that TIGA has campaigned for. Ministers have made the right decision at the right time for the right industry. Government Ministers are to be warmly congratulated for their visionary decision. TIGA now looks to the Opposition parties to give their full support to Games Tax Relief in the Finance Bill.”

Jason Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion Studios (Oxford): 

"This is the right decision for the future of the UK games industry and consumers across the world who enjoy playing British made games. TIGA’s Games Tax Relief will enable the UK games sector to compete on a more even playing field. It will also promote the creation of high skilled jobs, enhance investment and stimulate an export focussed industry.”

“Games Tax Relief is also a decisive achievement by TIGA. There are around 1,000 trade associations in the UK working to influence Government policy. In 2009, only one sector was invited by the Government to submit a case to change UK tax policy– the games industry. Only one trade association submitted a substantive, well researched case for Games Tax Relief - TIGA. Only one trade association campaigned unremittingly for Games Tax Relief right up to today’s Budget– TIGA. Today, TIGA has delivered the industry’s top priority– Games Tax Relief.”

Mark Gerhard, CEO of Jagex (Cambridge):

“TIGA has been the only trade association to have consistently advanced the case for Games Tax Relief. I am absolutely delighted that the Government has decided to introduce TIGA’s Games Tax Relief in today’s Budget. TIGA has made a significant difference to the UK games industry. The UK games industry is set for further growth and innovation.”

Gareth Edmondson, TIGA Vice-Chairman and Managing Director, Ubisoft Reflections (Newcastle):

“I am delighted the Government has finally backed TIGA’s call for Games Tax Relief. This is a real triumph for UK developers. It will enable the UK games industry to remain a success story.”

Colin Macdonald, Studio Manager at Realtime Worlds (Dundee):

“The UK video games industry is one of the most creative and innovative in the world. This decision will mean we can continue to invest in UK talent and prevent brain drain to our overseas competitors. This is a great day for Scottish and UK-wide developers. It is also a major achievement by TIGA”

Colin Anderson, Managing Director at Denki (Dundee):

"Games Tax Relief will stimulate much needed investment and innovation in one of the UK's leading knowledge based industries. The leadership TIGA has demonstrated throughout this debate has played a decisive role in getting Games Tax Relief on the political agenda and in to today's Budget."

Philip Oliver, CEO Blitz Games Studios (Warwickshire):

“TIGA has worked tirelessly to raise the profile of our industry among Government and Parliamentarians. Today’s decision is proof that this hard work has paid off. It is fantastic that the Government is supporting TIGA’s Games Tax Relief and we are sure that this measure will grow the industry, create more jobs and lead to higher tax revenues for Government in the future. The Government has made a wise investment by committing to TIGA’s Games Tax Relief today and the whole of the UK industry will applaud them for this decision.”

Paul Mayze, COO Monumental (Nottingham):

“This is absolutely the right decision from Government. As UK developers we have been struggling with an increasingly uneven global playfield. Today’s decision by the Government to back the introduction of TIGA’s Games Tax Relief will go a long way to helping ensure that we can remain competitive in the global market.”

Ends

Notes to editors:

About the UK Games Development Industry:

• In July 2009, UK-based games studios sustained 9,500 highly skilled creative jobs across 240 companies (TIGA, Investing in the Future Report, August 2009).

• The games industry supports 27,000 people in studios, publishing and retail positions (TIGA, Investing in the Future Report, August 2009).

• UK based game developers are highly skilled: 60% are educated to at least degree level, making games development part of the UK’s growing“knowledge economy” (TIGA, State of the UK Video Game Development Sector, 2009). 

• A report ranking the world’s top 100 most successful studios, showed nearly 1/4 were in the UK (Develop 100 report, May 2009)

• Employment in the UK games development sector fell by 4% and 15% (44) of its companies went out of business between July 2008 and July 2009, resulting in millions in lost tax revenues. This is despite global industry sales growing by 20% in 2008 compared to 2007 (TIGA, Investing in the Future Report, August 2009)

• In total, the UK Games Development industry contributes over one billion pounds a year to UK GDP, taking into account direct, indirect and induced impacts (TIGA, Investing in the Future Report, August 2009).

• In 2009 the games market generated£3.311 billion (£1.621 billion in software sales, and£1.06 billion in hardware sales,£0.63 billion in gaming peripherals) (GfK Chart-Track, Jan 2010)

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 outsourcing companies, technology businesses and universities amongst our membership.

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 Eva Field, TIGA PR Manager on: 07814 039 983, or email eva@tiga.org.


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