Tax break for UK game developers on hold and slowing down the industry

A trade body claims that the UK gaming industry is ‘stuck in the slow lane’ compared to other countries in the EU, as the European Commission puts tax breaks on hold for gaming firms yet Call-of-duty-strike-team-1again.

Many projects are being stalled according to the representative for independent UK game developers, Tiga. These plans have been put on hold by worried publishers, but the tipping point came when major publisher Activision warned it may have to close its Leeds-based studio, the Blast Furnace.

The Blast Furnace created various popular mobile gaming titles, including Wipeout, Call of Duty Strike Team and Pitfall.

The proposed tax relief scheme was first suggested by the Chancellor George Osborne back in 2012, with the aim of bringing the UK in line with the thriving gaming industry that was being seen in other countries such as Canada and France.

Boost needed

The proposed break includes 25% tax relief on as much as 80% of a new game’s production budget as long as the money is spent on producing it within the UK.

The European Commission claimed that further investigation was needed as there was no clear market failure to be addressed. This came after the scheme was due to come into play in April last year, and the plan was not approved in time for the deadline.

According to Lobby group Tiga, the investigation is ‘nonsensical’ and that ‘this has really gone on for a long time now.’ Dr Richard Wilson claims that companies are pulling out of the UK as a result of the slow progress and stilted industry.

The lack of timetable or deadline for the decision is harming the industry, according to the gaming expert, and the UK is failing to reap the benefits of a booming industry.

 

 



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