Videogame Makers Need Tax Breaks

October 28, 2014 Taxation in UK

LONDON – The UK’s GBP 70 billion dollar video game industry will benefit greatly from a tax break to encourage employers to spend money on more staff training.

On October 27th the UK based videogame industry body TIGA and the digital trade body BIMA issued a joint statement suggesting that the UK should introduce a tax break for small and medium sized businesses in the creative sector providing training to employees.

In the statement the two groups suggested that the proposed tax break could operate like the currently available research and development tax break, whereby business which do spend money on qualifying expenses should be able to offset the spending against the corporate tax obligations.

According to the experts of TIGA, the video game sector, and other creative industries in the UK, is supported by an extensive network of small and medium sized enterprises, and encouraging these small businesses to invest in training and skills-development for staff will improve the entire industry and would “… also lead to stronger business-educational links”.

It is estimated by the HM Revenue and Customs that the creative sector in the UK is currently worth approximately GBP 71.4 billion per year.

Photo By: Joey