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UK SPRING BUDGET: TIGA CALLS FOR SUBSTANTIAL INCREASE IN RATE OF VIDEO GAMES EXPENDITURE CREDIT
UK trade body asks government to focus on increasing games expenditure credit.
game_press
March 7, 2024
2 Min Read
[This unedited press release is made available courtesy of Game Developer and its partnership with notable game PR-related resource Games Press]
TIGA :
TIGA, the trade association representing the UK video games industry, has called on the Government to substantially increase the rate of Video Games Expenditure Credit from the current 34 per cent to drive investment and employment growth in the UK video games industry.
The rally call from TIGA comes following the news that the Rt Hon Jeremy Hunt MP, Chancellor of the Exchequer, has made permanent tax reliefs for touring and orchestral productions, which had been due to end in March 2025.
In addition, the Chancellor announced the UK Independent Film Tax Credit (IFTC). Under IFTC, eligible films will be able to opt-in to claim enhanced Audio-Visual Expenditure Credit (AVEC), at a rate of 53%, on their qualifying expenditure.
TIGA submitted proposals to HM Treasury last month, ahead of the Spring Budget, which included the following key policies:
An increase in the Video Games Expenditure Credit rate from 34 to 39 per cent of qualifying expenditure.
The establishment of a Video Games Investment Fund to provide pound-for-pound match funding of between £150,000 and £500,000 to games developers throughout the UK.
The UK Games Fund should continue to receive support. The Fund offers grants of up to £25,000 to businesses looking to build game prototypes and a Content Fund.
Dr Richard Wilson OBE, TIGA CEO, said:
“Just as the Government plans to stimulate investment in film via an enhanced rate of relief, so the Government should substantially increase the rate of the Video Games Expenditure Credit to encourage investment in the UK games development sector. Our VGEC should aim to be among the most attractive in the world. A more generous VGEC will create more high skilled jobs, boost investment and the growth of games clusters throughout the UK. It will also enable our development sector to compete on a more level playing field, as many of our competitors strive to attract FDI via generous tax reliefs.”
Jason Kingsley CBE, TIGA Chairand Creative Director at Rebellion, said:
“It’s good to see the Chancellor reinforcing growth in the creative sectors through the sector specific tax reliefs announced in today’s Budget. If the Government adopts TIGA’s proposal to significantly enhance the Video Games Expenditure Credit then we can be confident of further growth in jobs, investment and studios in the UK.”
Other key points for businesses in the Budget include:
A National Insurance tax cut from 10% to 8% in April.
Those who are self-employed also get a second tax cut through a further 2p reduction in the NICs main rate from 8% to 6%.
The 5p cut and freeze to fuel duty is maintained until March 2025.
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