ADVISORS PREDICT that the introduction of a video game production tax relief will run similar to that available for films.
Currently UK film productions can claim a payable cash rebate and corporation tax deductions. This may prove the route taken by the Treasury following the announcement of relief for making video games.
The video game relief, part of a clutch of tax announcements made in yesterday’s Budget intended to boost the creative industries, will cost the Treasury £50m between 2013 and 2015.
“We expect the new reliefs to be modelled on existing film tax credits which were introduced a few years ago and have been very successful in bringing more film productions to Britain,” said Lucy Parry, media tax specialist at KPMG.
Barry Murphy, tax partner at PwC, said: “This is good news for the British industry as it was under increasing competitive pressure from other countries offering lucrative credits.
“For many years the games industry has asked to be recognised for the value it drives, in a manner similar to the film industry. It looks like it’s now game on with the chancellor announcing tax breaks will extend to games, and some TV productions come back into the tax relief net too.”
“The new tax rules are likely to be based on the existing tax system for UK film producers which is generally thought to have brought about £1billion of investment into the UK last year,” said Andrew Wilkes, head of London corporate tax, Smith & Williamson.
A consultation will be launched to discuss how the relief will work.
The current business rates system is over-complex and reform is needed, but reforms should focus first of all on simplifying the appeals process, particularly for businesses which are subject to business rates exemption
The CIoT has called on the government to rethink its approach to ensuring online sellers pay the correct amount of VAT.
Jane Ellison to serve as 'tax minister' following ministerial responsibilities for public health. David Gauke become chief secretary to the Treasury
Head of editorial Kevin Reed discusses the accountants in the new cabinet; the FRC's report into audit market concentration; and the Top 40 International Networks Survey 2016