UK tax relief for the CG industry
Great news for the whole CG industry: The UK government has announced its intention to establish nationwide games, animation and high-end television tax breaks…
The UK Chancellor of the Exchequer George Osborne announced in his 2012 budget statement last week that the British game and animation sectors will receive some form of tax relief, similar to those currently available to the film industry.
“Following consultation on the design, the Government will introduce corporation tax reliefs for the video games, animation and high-end television industries from April 2013, subject to State aid approval,” read the official budget report.
“The film tax credit, protected in our spending review, helped generate over £1 billion ($1.58 million) of film production in the UK last year alone,” Osborne said. Expanding it would, he said, not only encourage UK TV productions to shoot at home but possibly “attract Disney and HBO to make more of their premium shows in the UK.”
“It is our determination to keep ‘Wallace and Gromit’ exactly where they are,” he said.
The report puts the relief for video games at £15 million in 2013-14, and £35 million in 2014-15. (Relief for the years following are not listed.)
UK trade association TIGA has long-campaigned for tax credits said the news was ‘terrific’.
“Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring,” said TIGA CEO Richard Wilson. “This victory will benefit not just the UK games development and digital publishing sector, but also the wider UK economy.”
“Tax relief for the video games sector will increase employment, innovation and investment in the UK video games industry,” commented TIGA CEO Richard Wilson.
Read the full article here.
The news has been widely welcomed by industryites*
“The proposed changes in the UK tax laws regarding television would give the British industry a much-needed shot in the arm,” said Andy Harries, whose Left Bank is currently shooting ‘Mad Dog’ and ‘Strike Back” in South Africa.
“British production talent is responsible for some of the best television in the world and at the moment many productions, which could easily be shot in the UK, are being made abroad and many talented creatives are moving elsewhere.”
Stephen Garrett, chairman of Kudos Film and TV, called the news “fantastic.” “There is a huge demand for good quality television dramas around the world. In the UK, we have a brilliant track record of coming up with the ideas and talent to produce them, and now we have the critical piece of the jigsaw to ensure that they are made over here.”
Stewart Till, co-CEO of U.S.-based RHI Entertainment, said, “Today’s news is a game changer. It will have a fundamental effect on where we base our multi-million dollar productions in the future. Up until now, Europe and Canada have been our destinations of choice as it has simply been too expensive for us to shoot in the UK, despite the first-class facilities.”
on Friday, March 30th, 2012 at 11:51 am under Industry, News.
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Tags: CG industry, UK animation, UK games, UK TV tax breaks