UK studios want the next Government to increase games tax relief for studios from 25 per cent to 30 per cent, according to a new TIGA survey.
The subsidies were only introduced last April, but developers are keen for a cost benefit analysis to study the benefits of an increased rate. 30 per cent would still be lower than enjoyed by studios in regions such as Quebec, which enjoys a 37.5 per cent tax credit.
According to the survey, which saw responses from more than 100 UK games businesses, other top priorities included making Prototype funding available to enable start-up studios to access finance and develop new IP, and also making National Lottery funding available for games development investment.
It’s worth noting that the Government has already announced a new Prototype Fund worth £4 million, as well as making a further £4m available to studios through match-funding scheme the Skills Investment Fund.
“This survey shows that access to finance continues to be a critical issue facing the UK video games industry: games tax relief, the Prototype Fund and the Creative Content Fund all have the effect of enabling developers to raise more finance and invest more money in games development in the UK,” said TIGA CEO Richard Wilson.
“It is hugely encouraging that games tax relief has been introduced, and a Prototype Fund announced in the last budget of this Parliament. However it is vital this progress is maintained if the UK video game industry is to fulfil its growth potential on the global stage. For example, the establishment of a Creative Content Fund, potentially financed via the National Lottery (or from Innovate UK) would give a further significant boost to the sector."
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