The UK’s video games industry trade body says that tax breaks for video games developers remain a realistic hope.
Rumour had spread prior to today’s budget from Chancellor George Osborne that the long-awaited tax breaks would be included as part of the statement.
They did not, although the post-budget statement did add the following:
Corporation tax: video games tax relief and high-end television tax relief –
The government will extend video games tax relief to goods and services provided from within the European Economic Area and apply a cap on subcontracting of 1 million per game, subject to state aid clearance. The legislation will also be clarified so that only those games and television programmes qualifying for relief will be treated as separate trades.
(Finance Bill 2014)
None of which dampens the belief that tax breaks for video games WILL arrive.
The ongoing delay to the UK games tax relief scheme has been very frustrating for UK developers,” UKIE CEO Dr Twist said. 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.”