Chancellor George Osborne in this his autumn statement today has promised the corporation tax reliefs for the video game industry will be "among the most generous in the world". The official statement from the treasury said "Following consultation on their design, the Government will ensure that the reliefs are among the most generous in the world by offering a payable tax credit for all three reliefs worth 25 per cent of qualifying expenditure,"
The corporation tax reliefs are not just for the games sector but for all the creative sector, which includes animation and television production, which are aimed to come into effect from April 13, and will offer qualifying companies the chance 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."
Another promising point was further investment in the existing Skills Investment Fund administered by Creative Skillset over the next two years, which will add video games to its remit. The government will match industry contributions of up to £6 million over the next two years.
The official budget report then stated the tax breaks would be introduced next April and would see relief of £15 million in 2013-14 with an additional £35 million in 2014-15 due to this initiative.