UK Government to Give 25% Tax Relief to Game Studios

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It’s been a pretty tough year for the UK games industry with several studios closing and job losses at several other studios and developers. Earlier today the industry got a lift after an announcement by chancellor George Osborne in his autumn budget briefing that will see tax breaks and funding given to the industry.

With the UK games industry contributing around £1bn a year to the UK economy, there has been many calls for more support from the government in the wake of job losses, studio closures, competition from other countries like Canada and some of the best British talent moving abroad to work.

Chancellor George Osborne today made moves to help strengthen the games industry, protect jobs, encourage overseas investment and hopefully continue the growth the industry through the following:

  • Proposed rate of production tax relief set at 25% for UK games development
  • Share of a £6m skills fund is to be made available to the games industry with the the Film and TV industries also getting part of this fund
  • UK Interactive Entertainment (UKIE) funding to be increased by 25%
  • Corporation tax to be further reduced to 21% by 2014

The new tax break system will start in April 2013, with a relief schedule of £15 million to be awarded  from 2014. A further £35 million will be awarded from 2015.

Source: CVG

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