November 21, 2016

TIGA, the independent games association, has released a new handbook outlining how video games businesses can benefit from Games Tax Relief. The handbook, produced with Grant Thornton, comes as the latest figures released by the BFI show the sustained benefit Games Tax Relief has had for the UK economy.

Games Tax Relief, which effectively reduces the cost of games development, was first implemented in April 2014. It has supported the creation of 167 new games in the last 12 months alone, with budgets totalling £350.2 million, a tenfold increase on the previous year (£33.9 million). UK/EEA spend constituted 72% of this total.

In Q1 – Q3 2016 alone, Games Tax Relief supported the creation of 128 games, up from 77 the previous year, with budgets totalling £158.3 million and a UK/EEA spend of £141.2 million. UK/EEA spend constituted 89.2% of total budget.

Dr Richard Wilson, CEO at TIGA, said: “… figures from the BFI illustrate the terrific momentum the UK games industry has enjoyed since this vital tax measure was introduced. We’ve witnessed a significant increase in certified budgets and games, a clear sign that the measures are effective in stimulating a vital component of our creative industries. We have developed our tax relief guide to enable as many games businesses as possible to fully benefit from GTR in the years to come, thereby allowing the UK economy to continue to flourish. GTR enables studios with qualifying games to reduce their corporation tax if their game makes a profit, or receive a cash tax credit if their game makes a loss. TIGA wants to see even more studios and games benefiting from GTR”.

Jason Kingsley OBE, Chair of TIGA and co-founder at games developer Rebellion, said: “The games industry is a UK success story to be proud of – famed the world over for the craft, originality and skill on show. What’s more, with VR becoming mainstream for the first time, the UK’s games developers are treading entirely new ground, and Games Tax Relief is playing an invaluable role in buttressing that creativity, enabling developers both big and small to viably explore the limits of their craft. [The] figures prove that GTR is making a real difference for studios, the industry and the UK”. To read TIGA’s press release in full and to access the guide, click here.