The European Commission has finally approved the Games Tax Relief that the gaming community in the UK has been waiting for. This is excellent news and long overdue, after the chancellor announced this relief in last year’s Budget.
There are roughly 500 games studios in the UK, so this is very welcome news. This will help the industry better compete with the likes of Canada and Singapore, and slow down the movement of talent overseas. By claiming the relief on qualifying expenditure, studios will have more money in their pockets meaning they can afford to spend more on people and therefore games development. It is estimated the relief will provide £35 million of support annually.
The relief is available on qualifying expenditure, and is available from 1 April 2014. Studios now need to take time to understand the relief to ensure they will meet the criteria for making a claim, and maintain adequate records of the expenditure they incur.
HMRC and the Department for Culture Media and Sport will shortly be issuing further details to ensure making a claim is as easy as possible, in the meantime should you have any questions please get in touch with your Kingston Smith contact.