UK Government details video game tax breaks, starting April 2013
The British Government today outlined details of the tax relief opportunities that will be afforded to video game studios in the UK from early next year.
The Government said earlier this year
that it is looking to make Britain "Europe's technology centre" with the upcoming tax breaks, which it hopes will coax more developers to build up their studios in the UK.
The Autumn Statement from the HM Treasury
[PDF] today expanded on the plans, noting that the proposed tax relief for video games, animation and high-end television industries will be available from April 2013 onwards.
It also notes that the Government plans to make sure the tax breaks are "among the most generous in the world," with payable tax credits worth 25 percent of qualifying expenditure.
"Under these reliefs, qualifying companies will be able to choose between an additional deduction at a rate of 100 per cent of enhanceable expenditure or a payable tax credit at a rate of 25 per cent of qualifying losses surrendered," the statement reads.
Elsewhere, it reveals that the Government will match voluntary industry contributions of up to £6 million ($9.7 million) over the next two years to its existing Skills Investment Fund, as it looks to expand the fund to support video games.
Notably, when the tax breaks launch next year, studios will have to pass a cultural test
to show that they deserve to receive the relief.