Feeds

Devs cheer as Osborne okays game coding tax relief

Level of relief TBD

Remote control for virtualized desktops

Budget Day 2012 Chancellor George Osborne has heeded calls from the videogame industry and agreed to provide it with tax breaks.

Announced in today's Budget, the scheme will commence in April 2013, giving time for civil servants and stakeholders to thrash out the details - "subject to State Aid approval and following consultation", as Mandarin-speak puts it.

That said, the Treasury estimates the relief, which will also apply to animation companies, will cost the Exchequer £15m in the 2013-2014 tax year, rising to £35m in 2014-2015.

Videogame industry organisations such as Tiga, which represents developers, believe that cost will be more than balanced by extra tax revenue generated by UK publishers who would otherwise send development work overseas to countries already offering generous tax breaks to games coders.

"Our research shows that games tax relief should generate and safeguard 4661 direct and indirect jobs [and] generate £172m in new and protected tax receipts," Tiga's CEO, Richard Wilson, said after the annoucement was made.

Tiga and others have been lobbying for videogame development tax breaks for years. The development 'brain drain' has become much worse as companies have migrated to nations - Canada, France and Korea most notably - offering such incentives.

Labour Chancellor Alistair Darling finally took issue sufficiently seriously to "offer help to the computer games sector similar to the steps which are helping restore the fortunes of the British film industry", a pledge made during his March 2010 budget.

Three months later, the incoming coalition government scrapped the plan in Osborne's first, austerity budget. ®

Beginner's guide to SSL certificates

More from The Register

next story
PEAK APPLE: iOS 8 is least popular Cupertino mobile OS in all of HUMAN HISTORY
'Nerd release' finally staggers past 50 per cent adoption
Apple spent just ONE DOLLAR beefing up the latest iPad Air 2
New iPads look a lot like the old one. There's a reason for that
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Microsoft fitness bands slapped on wrists: All YOUR HEALTH DATA are BELONG TO US
Wearable will deliver 'actionable insights for healthier living'
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Caterham Seven 160 review: The Raspberry Pi of motoring
Back to driving's basics with a joyously legal high
Back to the ... drawing board: 'Hoverboard' will disappoint Marty McFly wannabes
Buzzing board (and some future apps) leave a lot to be desired
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.