Trade body will be making full response to government consultation and call for industry input
The UK Games and interactive entertainment trade body (UKIE) have announced that they are ‘broadly happy’ with draft legislation published that outlines how game industry tax relief system will work.
The government have also recognised the new business models and ways of making games which stretch beyond ‘release’. Ukie have stated their beliefs that being able to claim for production costs incurred for DLC or post-launch costs will give the UK a big competitive advantage over many other countries.
The main headlines from the draft legislation include:
- Proposed rate of production tax relief set at 25% for all UK games development.
- No minimum budget threshold for games to qualify for relief.
- The proposed tax relief scheme recognises the new business models and ways of making games.
- Main industry recommendations for the Cultural Test element of the tax relief scheme seem to have been accepted.
- There will be a full consultation on the draft proposal.
Following last week’s reveal of a proposed 25% rate of relief for the games industry, Ukie have said that they ware pleased that the government has listened to a number of their proposals.
During Ukie’s consultation process they spoke to over 200 game buisinesses. They used a number of methods including working groups, face to face meetings, regional seminars, and online consultations (via Facebook, Twitter and a survey) to ensure all voices were represented. Ukies team also maintained constant contact with officials at HMT and DCMS to make sure that a consistent message and voice was presented to the government at all times.
Ukie CEO, Dr Jo Twist spoke of the legislation proposal saying:
“We’re pleased that an initial look at the draft legislation seems to be another positive step for our members and the wider industry, helping us to keep the UK as a leading creative force for games on the global stage.”… “It is however vital that we properly scrutinise every detail of the legislation to make sure that the final scheme is in line with the needs of our industry. We need all games businesses to feed-back their thoughts over the next three months. So that we can ensure that we have the best possible system operating for all UK games businesses. As before we’ll be reaching out to TIGA to make sure that there is a single message to government and we’ll be holding open sessions in January to discuss the draft proposal. All games businesses are welcome to join us and they can sign up by contacting consultations@ukie.org.uk .”
Ukie have also broadly welcomed the proposed outline for the Cultural Test element of the tax relief scheme. However this is still awaiting clearance from the European Commission. Ukie have stated that they will be working hard in the UK and at a European level. This will ensure that the Cultural Test operates as effectively as possible for British games businesses.
Peter Hepworth the Managing Director for Activision Blizzard also said:
“Activision has always valued UK development talent, most recently investing in The Blast Furnace, a new mobile games studio in Leeds. Having fiscal incentives in place will enable us to continue to create great games in the UK. This will make developing here an attractive proposition for global games businesses.”
For more information about Ukie visit: www.Ukie.com
Games businesses can sign up for the Ukie Tax breaks roundtable to be held in January at: consultations@ukie.org.uk .
