EU removes the block on tax incentives for the UK games industry
The European Commission has announced that they have lifted a block that prohibited the UK Government from introducing tax relief for the British games industry.
Almost a year after the measures were unveiled by Westminster the EC has concluded an investigation into whether the UK's games industry required tax relief concluding that their doubts over the proposals were unfounded.
Joaquin Almunia, VP in charge of the EC's competition policy stated, "Our initial doubts have been dispelled. The proposed aid for video games is indeed focusing on a small number of distinctive, culturally British games which have increasing difficulties to find private financing."
UKIE CEO Dr Jo Twist responded to the news saying, “This is a huge boost to the UK games and interactive entertainment sector and the start of a great new era of games production in the UK. We are delighted the European Commission recognised the clear market failure for the production of games with a British and European flavour, using UK-based creative and highly skilled talent.”
“We are extremely happy to have played a part, as a strong collective voice for the industry, to get the scheme over the finishing line,” Twist added. “We have been in constant contact with government throughout the process and have applied pressure and evidence for the scheme to be introduced at every opportunity.”
In order for a game to receive the UK tax breaks they will need to pass a cultural test scoring 16 points or more on the criteria laid out over on Develop Online.
Thanks Develop Online.