Budget 2011: Video game tax breaks ignored again

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UKIE, the trade body for video games, has stated it wasn’t best pleased to hear industry-specific tax breaks were not added in the 2011 budget.

Michael Rawlinson, UKIE director general, said it is “disappointing not to have industry specific tax breaks introduced”.

Speaking to Develop, Rawlinson did express approval of the increases to R&D tax credits, which are expected to grow to 200 per cent from April, then 225 per cent in 2012.

On the whole, UKIE is, “delighted to see increases to the R&D tax credit rate.”

“UKIE identified changes to the R&D system as a key area in its pre-budget submission to Treasury and shall be concentrating on making sure that the industry makes full use of these tax credits through practical support in the coming months,” Rawlinson concluded.

TIGA and other industry heads believe breaks are needed to keep the UK as a tempting place to develop games. With talent off to other countries to keep costs down, including Canada where the help is largest for game development, and studios feeling the pinch, action to keep investment flowing is needed.

Although, again a non-specific change, the two per cent cut to corporation tax will benefit developers wishing to start-up or remain making games in britain.

It’s just a shame George Osborne had indicated as much as £30 million was going to be given as direct tax relief.

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