The UK could finally be getting the Game Tax Credits which were confirmed in 2012, and expected in 2013, after a year in red-tape limbo.
The announcement could come as early as Wednesday, during the Chancellor of the Exchequer’s annual Budget Speech.
This news comes after the UK Minister for Culture, Communications and the Creative Industries, Ed Vaizey’s announcement in late February that news on the Game Tax Credit situation was expected, one way or the other.
“We are working very hard to achieve a resolution. I don’t want to say anything until we have a result… We are expecting a decision imminently… I do think the tax credit is going to be a vital part of the success of the industry.”
While the tax relief was expected to commence on April 1st 2013, it was held back by the European Commission, who questioned its necessity, claiming there was no obvious market failure, despite a 10% decrease in investment between 2008 and 2011. The European Commission is now said to have changed their stance on the matter.
Any announcement that the Chancellor of the Exchequer makes with respect to the game tax credits would mark the end of a long campaign by the UK trade bodies TIGA and UKIE, along with other UK developers to have their industry recognized for its contributions to the UK economy, and to help it compete with countries such as Canada, which offers generous tax relief for its studios.
Check back for more information regarding this announcement after the Chancellor of the Exchequer’s annual Budget Speech.