While specifics were not detailed, Chancellor Alastair Darling announced the plans as part of the Budget for 2010.
"Our creative industries are a huge source of jobs, wealth and pride," said Darling according to GamesIndustry.biz. "I will offer help to the computer games sector similar to the steps which are helping to restore the fortunes of the British film industry.
"This is a highly successful, growing industry, with half its sales coming from exports and we need to keep British talent in this country."
The announcement has gained universal praise from trade association TIGA and a wealth of development studios.
TIGA CEO Dr Richard Wilson said: "This is an inspired decision. In backing TIGA's Games Tax Relief the Government has chosen the future over the past, growth over decline, success over failure. Games Tax Relief will increase employment, investment and innovation in the UK video games sector."
Realtime Worlds studio manager Colin Macdonald said it was "a great day for UK-wide developers", while Blitz Games CEO Phillip Oliver said that "the whole of the UK industry will applaud [the government] for this decision".
TIGA previously slammed the government for failing to announce any tax breaks in the Pre-Budget Report last December.