Gaming and interactive entertainment trade company, Ukie, is using government response to highlight how the tax relief “cultural test” should recognize all parts of the gaming industry and its unique cultural differences.
Now all game related businesses will have to pass a cultural test in order to qualify for the proposed tax relief on video games which is set to be introduced next year. Today Ukie has taken the opportunity in response to the Government consultation, to outline and highlight how this test will be applied to gaming businesses in the UK.
CEO of Ukie, Dr. Jo Twist said, “The cultural test is an important part of the system allowing tax credits to be put in place. Ukie’s response outlines how we can have a rigorous test, meeting the needs of the EU state aid process, but a fair one that accurately reflects how games are made in the UK today and who makes them. We have also made recommendations that will help make sure that the test recognizes all parts of the games industry, from the traditional console and PC markets to the mobile and social games that have emerged in recent years.”
While preparing its response, Ukie has taken the liberty to meet with gaming businesses of all sizes, issuing an online survey to the multinational developers and indie studios alike. Following up on previous tax breaks Ukie has also shared their response with TIGA to ensure that stable opinions are presented on such an important issue. The company also submitted a joint proposal on behalf of TIGA and Ukie on their definition of games.
The main points of Ukie’s response are as follows:
· The cultural test should reflect that tax breaks need to be of real benefit to all parts of the games industry, from small independent studios and existing bigger studios to attracting inward investment from multi-national companies.
· The games industry cultural test should be given an extra maximum point allocation (raising it from 30 points to 31 points), bringing it into line with the total number of points available in the UK film industry’s cultural test
· The test itself should accurately reflect the process of how games are made today in the UK, including recognizing coding as an essential part of the creative and artistic skillset involved in the crafting of interactive entertainment
· Games will not always have a traditional narrative, describable setting, or characters of a recognizable species. Ukie therefore welcomes the government’s proposal to recognize fictional settings and species
· Four points should be allocated to games made in the English language (up from two), again bringing this in line with the UK’s film industry cultural test
· Ukie welcomes the emphasis and potential points being allocated for using UK service providers
· The test must recognize that, in smaller businesses, for example micro studios, one person will often do several key jobs and points should still be given for each of these roles
· Ukie calls for the team administrating the cultural test for video games to be recognized experts with significant experience and understanding of the games industry. If this resource sits under the BFI then it must be sufficiently resourced and the name of this cultural test body should reflect its wider remit
