Ukie, a games and entertainment trade body, has responded to the UK government’s video games production tax consultation. They are proposing that the rate of tax relief should be set at 30%, and should effect all levels of game developers regardless of their size. Ukie also teamed up with TIGA, a trade association which represents the UK’s video game industry, to consult with 221 companies ranging from huge multinationals to one-man basement-developers.
Ukie CEO, Dr. Jo Twist said:
“This scheme is a real opportunity to grow all parts of the UK games industry – from small, to medium, to big businesses.”
It’s interesting to see that they are focusing on every level of developers, and not just giving the big guys a break. This proposal also comes on the heels of the recent closure of Studio Liverpool, formerly Psygnosis, and efforts like this may help to alleviate pressures on big UK studios.
They seem to also want to bring the video game industry regulations up to date by allowing companies to claim on production costs for DLC. These seem like very clever and interesting ways to initiate a healthier and productive UK video games industry. It could also lead to some companies moving over in an attempt to reap the tax relief benefits.
Ukie publishes its response to government tax relief consultation
10 September 2012 – London, United Kingdom – Games and interactive entertainment trade body, Ukie, calls for new system to benefit all parts of the industry.
Ukie has today used its response to the Government’s video games production tax credit consultation to outline how the new scheme would best work for all parts of the UK’s games industry.
The main points made in Ukie’s response are:
Government is urged to make sure that the new scheme supports all parts of the industry – encouraging growth from small independent studios, existing bigger studios and attracting inward investment from multi-national companies.
Recommending that the rate of relief should be set at 30% for all UK games development.
There is no need for a minimum budget threshold for games to qualify for relief.
Call for assurances that the new business models and ways of making games which stretches beyond “release” are recognised in the new tax system – which means that games businesses can claim for production costs incurred for DLC or as games continue to be developed and iterated.
The games industry should have a specialist team dealing with Tax Returns and Cultural Test applications.
There should be a voluntary contribution allowed for companies to invest in talent development and skills.
Ukie has spent the last two months consulting with games businesses throughout the UK – reaching a total of 221 individual companies (including 85 non-Ukie members) – from multinational publishers to one-person indie studios and everything in between. Ukie has also met with TIGA during this process to share thoughts and feedback to make sure that a consistent voice is presented to government on this crucial issue.
Ukie CEO, Dr Jo Twist said. “This scheme is a real opportunity to grow all parts of the UK games industry – from small, to medium, to big businesses – and will help people make even more distinctive and innovative games.”
“Having a system that recognises the new innovative business models and production processes in our industry, allowing developers to claim for DLC and continued development, post going-live to the public – gives the UK a real advantage over other countries.”
“Introducing a rate of 30% for all games businesses, regardless of their size, is the best possible way to ensure that the scheme gives the UK the level playing field that it needs to become a global games powerhouse.”
“We also want to urge government to effectively measure the true size of the games industry. As the recent report from Creative Scotland highlighted, it is crucial that we have accurate data so that we can judge the success of this scheme and other government policies.”
Ukie Deputy Chair, Ian Livingstone said: “The combined effect of tax breaks and a highly-skilled talent pool will mean that the UK will undoubtedly regain its rightful place as a world leader in video games development.”
“The Ukie team has done a great job in reaching out beyond its membership to speak to 221 games businesses of all sizes up and down the country to ensure that our industry response to this consultation truly represents a consensus of opinion for the entire UK. I’m also delighted to see Ukie and TIGA operating a joined-up industry approach to this very important issue.”
The full response can be found here.