UK Industry Group Advocates for Enhanced Tax Credits to Boost Competitiveness

The trade organization TIGA is urging the implementation of more substantial tax credits to support the UK's video game industry. According to a recent landmark report by TIGA, introducing a 53% tax credit for games with budgets of up to $32 million could significantly aid small studios in scaling up their operations. The report highlights the sector's crucial contribution to the UK economy and presents a compelling case for strengthening the Video Games Expenditure Credit. It emphasizes that the UK video game industry plays a vital role in the country's economy, supporting over 73,000 jobs and driving regional growth. However, the industry faces challenges in competing with international rivals due to less generous tax incentives compared to other jurisdictions. To address this, TIGA recommends an independent games tax credit with a rate of 53% on qualifying costs for projects up to £23.5 million, which could lead to a £482 million boost in Gross Value Added and the creation of nearly 7,000 jobs.