A recent government proposal in the UK considers offering game production companies a 25% tax break if 80% of the production budget is spent within the country. Check out this BBC news article about the proposal.
The aim of the proposed tax break is to encourage game production companies to set-up, relocate to, or remain in the UK. All aspects of the game design process are covered by the 80% budget requirement, including designing, production, and testing. The idea is that the money lost in tax revenue would be offset by the newly created jobs and spending.
Their proposal has been received well by industry trade association Tiga, who say it will safeguard and generate approximately 4,660 jobs. UK ISP Plusnet got in touch with members of staff at 17 game companies to get their thoughts on the matter, and the majority had good things to say. At a glance:
- 75% of people asked thought it would encourage more start-ups
- 70% thought the relief would let them make positive changes to their business
- 29% thought they’d benefit greatly, compared to only 17% who thought there would be no benefit
A full analysis of Plusnet’s findings can be found on their blog!
What do you think of this proposal?
Written by: Chris Lee, from Plusnet