Tax breaks on video games production will create and protect more than 10,000 jobs in and around the UK gaming industry, according to new calculations by Tiga, the games lobbying body.
The government will also benefit through receiving £490m in tax receipts over the next five years, while the tax breaks being introduced in the current tax year will cost just £129m – a net gain of £361m – over the same period, says Tiga, which forecasts that UK games studios will make an extra investment of £188m during that time.
The new data, revealed exclusively to the Guardian, comes just as the government in Quebec, Canada, slashed tax breaks for “English-speaking” games from 30% to 25% – almost the same as the UK’s 25% – as part of efforts to make $500m savings to its public finances. However, it is keeping a 37% break on “French-speaking” games.
Richard Wilson, chief executive of Tiga, predicted that the Canadian move would lead to an extra boost for the UK economy as publishers consider relocating projects, and personnel look to the UK for jobs.
Recent Comments