TIGA Speaks Out On Tax Break Issue

Yesterday’s story coming from Develop that an un-named publisher had allegedly ‘sabotaged’ the UK Tax Breaks for the game developers has today seen comment from TIGA, the trade association representing the UK games industry.

Dr Richard Wilson, CEO of TIGA, said that the story “confirms two essential truths,” stating that “only TIGA has the unity of purpose, the determination and the ability to deliver Games Tax Relief. I call on all games developers and publishers to unite with TIGA, to support our campaign with action and resources and to win the battle for Games Tax Relief.”

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“This is not the time to look for scapegoats in the industry,” he said. “This is the time to convince the Conservative Party and the Liberal Democrats – both of whom promised to introduce video Games Tax Relief before the General Election on May 7th – to renew their commitment to implement this crucial fiscal measure at the earliest opportunity.”

Wilson added that the UK games industry needs Games Tax Relief to “put us on a level playing field against games businesses in other jurisdictions, which currently benefit from significant tax breaks.”

“The UK Government needs Games Tax Relief because it will generate vital revenue for the Exchequer,” he continued. “The UK economy needs Games Tax Relief because it will help to create high skilled, well paid jobs in high technology, export oriented businesses across the UK.”

TIGA’s initial research shows that Games Tax Relief would protect or create 3,550 graduate level jobs, secure £457 million in investment and enhance innovation in the sector according to the organisation. “Games Tax Relief would more than pay for itself”, it says, “generating £415 million in tax receipts for HM Treasury.”

Do not name any specific publishers in the comments.

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11 Comments

  1. “I don’t belieeeeeeeve it!”

  2. *shock* Industry body wants tax break for the industry they represent

    I’m 1,000% certain that all industry bodies would want tax breaks for their industry (especially in worldwide recession), and what are we tax payers to do, fund them all?

    The UK games industry has taken a battering, but in case anyone didn’t notice – this has been replicated around the world with studio closures and/or job losses.

    I much prefer the outcome of the budget where all industries will see reduced tax burdens through lower taxation, employers contributions for National Insurance rises have been put on hold, and even cut at some levels. New start-ups can not pay NI on the first 10 employees and the biggie, Corporation Tax (essentially a tax on profits) is being reduced to the amongst the lowest levels in the developed world.

    Developers & publishers are business’ & as such will be able to take advantage of the above measures just like every other industry can.

  3. ‘Do not name any specific publishers in the comments.’

    Ok i wont then! *pulls an imaginary zip in front of mouth and crosses arms*

  4. Athlete #1 has steroids and can perform better.
    Athlete #2 feels hard done by and wants steroids too. Seems fair.
    Athlete #1 doesn’t want to lose the unfair advantage and runs straight off to the parents of Athlete #2 and stomps feet until said parents cave in.

    You’re damn right I want to find out who Athlete #1 is! I actually need focus for my vitriol. :-)

  5. Point 1: You are part of the EU. Maybe the politicians looked to other countries and saw all the problems that have getting permission to give targeted tax breaks (or other incentives) without the EU disallowing it as anticompetitive?

    Point 2: Why have a comment section if we’re not allowed to discuss all aspects of the article? Every intelligent person should realize that anything somone says here is speculation and shouldn’t be taken as fact, even the lawyers at whatever publishers we decide to speculate about.

  6. Quote:
    “Games Tax Relief would protect or create 3,550 graduate level jobs”
    The government is about to lay off 300,000 public sector workers, do you honestly think they give a damn about 3,550?

    • I’m pretty sure with a few hundred million in any industry would protect or create a few thousand jobs, but where will it stop?

      Same goes for your point about public jobs, except ramp up the money needed to maintain an artificially large state to many hundreds of billions

  7. yet another reason i didnt vote for liberals or conservative… both of which are a bunch of lying bast***s.. tho i didnt vote labour either thats not the point..

    tax relief for gaming companies will only be a good thing … shame none of the government a**holes can see it.

  8. I need a graduate level job! :)

  9. This is all blown out of proportion IMHO. Companies shouldn’t expect special treatment just because their industry is having a hard time, if it is bothering them that much let them export the work – a job lost in the UK is a job created somewhere else in the global economy, us end consumers won’t be any worse off, the government will have just trashed some jobs and income unnecessarily and get to look stupid for it later.

    To be honest, I don’t blame them one bit for scrapping targeted tax breaks. The UK’s debt is currently a higher proportion of GDP than Greece, we are in such a precarious financial situation as a whole this is hardly the time to be bitching about video games.

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