Grand Theft Auto 5: Rockstar Benefit from UK Tax Relief
Finally, the gaming industry in the UK is getting a break – a tax break. Well, the UK government has recently announced that there will be a tax break policy specifically made for the development of video games. The UK gaming industry has been campaigning for this to happen for years.
In his annual budget Chancellor George Osborne, announced that the games industry will soon be reaping the same benefits that the UK film industry has been enjoying all along. However, this will only be made possible through the approval of a State aid request. Osborne started putting together his plan for UK games industry tax breaks in 2010 after the Coalition Government takes over. The UK gaming industry will undoubtedly be thrilled with the developments. Like most UK industry it has felt the economic squeeze, and the iron fist or the Tories. UK studios close and has sadly bid farewell to professionals who moved on to countries that can provide them with better employment opportunities.
As a result, the UK games development has experienced a massive fall in terms of the number of studios. In 2010, it fell by 44 studios since 2008. There are still more recent casualties to the tax proble, such as Realtime Worlds and APB. The local industry’s trade association TIGA is no wonder happy about the recent announcement from the government. Dr. Richard Wilson, the CEO of TIGA, believes that tax relief will help increase employment, investment and even innovation in the industry. The change, however, will not be sudden. Jas Purewal, a London games lawyer, says that it will take at least one year for the tax breaks to take effect given the EU perspective and given the practical picture of the situation.
Even if that is the case, the UK games industry is happy enough to take what it can from the recent development. The tax relief can generate as much as 4,661 jobs. Not, bad at all.