UK chancellor of the exchequer George Osborne has announced that R&D tax credits for British firms will increase by 200 per cent from April 1.
The tax credit will be raised by 225 per cent in April 2012. The news was welcomed by TIGA, the UK trade association which has lobbied extensively on behalf of the UK firms it represents for improved R&D tax credits.
TIGA CEO Dr Richard Wilson said in a statement: “This will benefit not just the UK game industry but also the wider UK economy. The R&D credits will deliver 60 to 75 per cent more value to games studios than the current R&D tax credit regime.
“Government ministers are to be congratulated. The Labour Party, the SNP, NESTA and the House of Commons Scottish Affairs Committee also deserve full recognition for helping to achieve this crucial measure.”
However, TIGA has been pushing even harder for tax relief specific to the UK’s videogame industry, and expressed its disappointment that no such measure was included in the chancellor’s budget, describing it as a “dismal decision”.
The chancellor had previously described the proposed Games Tax Relief as “poorly targeted”. Instead today’s budget contains measures that will help all UK businesses, not just those involved in making videogames.
Corporation tax is to be cut by two per cent to 26 per cent, and will be reduced to 23 per cent by 2014. Independent developers will benefit from reduced regulation on small businesses.