Osborne reveals tax breaks for video games producers

UK gaming: tax credits unveiled in the Budget aimed at aiding troubled industry
UK gaming: tax credits unveiled in the Budget aimed at aiding troubled industry

The Government is to introduce tax breaks for the UK's troubled games industry, while the level of excise duty on all alcoholic drinks will remain unchanged, with no price increases on beer, wine or spirits, according to today's Budget.

Chancellor George Osborne was keen to stress the "financial responsibility" of this year's Budget, which also revealed financial aids to encourage the production of animation as a way to secure further investment and growth across the country's entertainment sector.

Osborne's disclosure about the tax breaks for the UK games industry comes on the same day that high-street gaming store Game announced it was going into administration.

In a tongue-in-cheek comment, Osborne said: "It is the determined policy of this Government to keep Wallace & Gromit exactly where they are."

(Labour leader Ed Miliband is supposed to look like the Wallace character in the animated series.)

Wallace & Gromit is made by Aardman Animations, which has campaigned for tax incentives for the production of animation in this country from the Government .

Specific details of the tax breaks for the gaming industry – and the animation sector – have yet to be revealed but have already been welcomed by the games trade body, TIGA.

Dr Richard Wilson, chief executive of TIGA, said: "Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry. Our research shows that Games Tax Relief should generate and safeguard 4,661 direct and indirect jobs.

"It will also help to rebalance the UK economy away from an over-reliance on financial services towards a high-skill, R&D incentive and export-focused industry."

The gaming industry has long campaigned for improved financial inducements.

Brian Murphy, tax partner at accountancy firm Pricewaterhousecoopers (PwC), said: "It looks like it's now game on with the Chancellor announcing tax breaks will extend to games – and some TV production comes back into the tax relief net too."

Follow John Reynolds on Twitter @johnreynolds10


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers
YouTube reveals user habits to appeal to 'older' marketers