Tax breaks for game devs!

[Brad]

http://www.reghardware.com/2012/03/21/chancellor_george_osborne_pledges_game_development_tax_relief/

[Dogg Thang]

Yep, for TV and animation too. Not until April 2013 and it is left open enough with 'consultation' to end up crappy tax breaks but still a great move and long overdue.

[Brad]

Great news mate. I wondered if they'd throw a bone your way :-)

[Dogg Thang]

The new tax breaks will require EU approval. I guess that explains in part why they'll take over a year to take effect... http://www.gamerlaw.co.uk/2012/03/uk...s-and.html?m=1

[FelixofMars]

On one hand very positive for opening new job opportunities, but on the other some places will still rest on their laurels instead of getting their acts together and will be willing to throw more juniors at the problem who will be kicked after the games shipped and not review their practices internally.

[Dogg Thang]

Well having experienced this over here (we have great tax breaks for productions in Ireland, although don't think they extend to games yet), where it really impacts is in bringing foreign productions in. If a big company/publisher/dev wants to get a game made, the tax breaks effectively become free money to the production, meaning they might take it to the UK rather than doing it elsewhere. This is a very good thing for employment obviously but does have one little downside which is that economics are fragile. If someone brings a production to the UK for the sole reason that it costs less due to the tax breaks, all it takes is another country to offer a better deal to have the next production jump to that other country.

In that sense, companies can't rest on their laurels because it's still very fragile (although some still will and there will be a whole lot of budgeting fiddles going on). And also many countries already have good tax breaks. What this does is just level the playing field in the UK a little. The companies will still need to remain attractive beyond just the tax breaks.

The other real upside though is in local production. Smaller productions will be able to raise more finance from within the UK itself. That could be great for home-grown productions which, in my mind, are often where there is a chance of sustainability.

[Neon Ignition]

It's excellent news, just a shame they've taken so long to bring it into effect. They had a real opportunity to make a lot out of the UK dev scene with this scheme but sadly they're bringing it in after we've already lost so many great studios. Still,, better late than never.

[FelixofMars]

I do hope your right, I want to believe this is a positive but past experience has taught me what I believe company's should do and what they actually do are at polar opposites.

Well having experienced this over here (we have great tax breaks for productions in Ireland, although don't think they extend to games yet), where it really impacts is in bringing foreign productions in. If a big company/publisher/dev wants to get a game made, the tax breaks effectively become free money to the production, meaning they might take it to the UK rather than doing it elsewhere. This is a very good thing for employment obviously but does have one little downside which is that economics are fragile. If someone brings a production to the UK for the sole reason that it costs less due to the tax breaks, all it takes is another country to offer a better deal to have the next production jump to that other country.

In that sense, companies can't rest on their laurels because it's still very fragile (although some still will and there will be a whole lot of budgeting fiddles going on). And also many countries already have good tax breaks. What this does is just level the playing field in the UK a little. The companies will still need to remain attractive beyond just the tax breaks.

The other real upside though is in local production. Smaller productions will be able to raise more finance from within the UK itself. That could be great for home-grown productions which, in my mind, are often where there is a chance of sustainability.