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

Discussion

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

Latest

Virgin, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message
Lynx unleashes £9m 'Peace invasion' campaign
Social Brands 100 Youth: Pizza Hut most social youth brand in UK
Cheryl Cole is wild and arresting in new L'Oreal work
Morrisons told not to show alcohol ads during YouTube nursery rhymes
O2 head of brand Shadi Halliwell departs after 23 years at company in restructure
Tesco hit by further sales decline as it turns to digital Clubcard and social network
Branding guru Wally Olins dies aged 83
Duracell short film captures epic Transatlantic voyage
Ash runs Tinder experiment to show smokers are less desirable to opposite sex
British Airways teams up with Gerry Cottle Jnr for summer of rooftop film screenings
Arklu says 'girls can be superheroes too' with doll design competition
Coke enters squash market with Oasis Mighty Drops
Virgin Galactic signs up Land Rover as space flight sponsor
Motorola marketer Andrew Morley departs as Google gears up for sale to Lenovo
US Airways apologises after tweeting obscene image at a customer
Mumsnet admits users' emails and passwords accessed via Heartbleed bug
Thetrainline.com backs 'rubbish' mobile app with TV ad
Powerade launches global World Cup campaign
Subway considers taking fast food to fast lane with F1 sponsorship
Burberry's flagship Shanghai store facade responds to weather changes
Ikea splurges 'grey' Belgium with colour
Grim outlook for Tesco boss Philip Clarke ahead of expected profits fall
Thomson to create first crowd-sourced wedding decided by Facebook fans
Currency wars meets origami in Alpari FX trading ad campaign
Amazon rumoured to launch 3D smartphone in September
Facebook to allow European users to store and transfer money on site, claims report
Unilever pilots multi-brand advertising with YouTube beauty channel
Lego, Coca-Cola, Net-a-Porter, Bitcoin and AOL: the digitally creative brands