Tax Allowances: Video Games

Treasury written question – answered on 4th March 2014.

Alert me about debates like this

Photo of Justin Tomlinson Justin Tomlinson Conservative, North Swindon

To ask the Chancellor of the Exchequer what recent assessment he has made of the potential benefits of providing tax relief to the video games sector.

Photo of David Gauke David Gauke The Exchequer Secretary

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:

http://www.hmrc.gov.uk/tiin/2012/tiin2060.pdf

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.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.