TIGA issues new games tax relief report

TIGA has released a new report on the benefits of tax relief for the UK games industry.

The document, which has been written by the trade association, Osborne Clarke and research company Games Investor Consulting, includes census data from around 80% of known British firms.

It has concluded that tax relief would create 1,328 new jobs in the studio sector over five years, with investment in UK studios increasing by £138 million.

It says that Tax relief would also indirectly create 2,427 places of employment as a result, and save 2,038 jobs and 3,726 indirect jobs over the same period.

TIGA added that since 2008, the headcount in the UK games industry has dropped by 9%, with direct and indirect contributions to tax revenues falling by £55 million, and its contribution to GDP declining by £132 million.

"The UK video games industry is an industry of the future - high tech, highly skilled and export-oriented," said TIGA CEO Dr Richard Wilson.

"If the coalition government is serious about its intention of rebalancing the economy then it should invest in the UK video games industry by introducing a tax break for games production.

"Games tax relief would create jobs, boost investment and generate much-needed tax revenue for the government."

TIGA succeeded in convincing Labour to introduce a tax credit in March 2010 before it was scrapped by the coalition government in the emergency Budget.

> Feature: Still Taxing Times For UK Gaming