Impact of the Autumn Budget on the UK Gaming Industry

The UK's Autumn Budget has prompted trade bodies Ukie and TIGA to call for improvements to tax relief for the gaming industry. Although the industry was barely mentioned in the announcement, experts note that minor administrative changes have been made to the Video Game Tax Relief (VGTR) and Video Games Expenditure Credits (VGEC) schemes. Key changes include increases to dividend tax rates, modifications to the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) investor relief schemes, and adjustments to Enterprise Management Incentives (EMI) option schemes. Additionally, changes have been made to salary sacrifice pension contributions and the eligibility for Capital Gains Tax relief when selling a company to an Employee Ownership Trust. Both Ukie and TIGA emphasize that enhancing VGEC would have a positive impact on the economy, particularly in driving growth. They cite research indicating that improvements to VGEC could create over 6,000 new jobs and generate significant tax revenues. The trade bodies will continue to work with the government to advocate for targeted support for the UK's gaming industry, which generates £12 billion in Gross Value Added (GVA) annually and supports over 73,000 jobs.