The Government announced a new tax relief for video games at Budget 2012, subject to state aid approval.
This relief will allow eligible companies to claim a payable tax credit worth 25% of qualifying production costs. As set out in the impact assessment, this relief is expected to cost around £25 million per year and there are approximately 300 video games companies in the UK that may benefit. The impact assessment can be found at:
There are significant games clusters all around the UK including in Brighton, Guildford, London, Oxford, Cambridge, Leamington Spa, Manchester, Newcastle and Dundee. In addition, many games development studios in the UK are new, micro or SME businesses.