Kuju, Blitz, other studios urge UK govt to consider implementing tax breaks

If you’re a video game developer, wouldn’t it be great if the government were to give you a 20% tax rebate on all of the games that you produce?

That’s exactly what UK developers are thinking, and they’re urging their government to seriously consider implementing tax breaks to support the UK games industry. Their example is, of course, France.

More taxing details after the jump!

If the European Commission can endorse it in France, then why not us? That’s the very question that leading UK-based developers are asking their government.

Specifically, these developers are urging the government to consider the possibility of implementing tax breaks for the video game industry.

Kuju Business Development Director Ian Baverstock and Blitz CEO Philip Oliver have cited both France and Quebec as examples of how government action can actually help the scene. Given the current situation UK games market is in, now would be a really good time for the UK government to look into the possibility of providing its much needed support. As Mr. Oliver put it:

Competing for high profile global contracts has become increasingly difficult because of the cost of developing games in the UK. There are already worrying signs of a talent drain from the UK to emerging markets and this will only get worse if change doesn’t come soon.

Currently the UK government provides no games-specific tax support or investment incentives. If the UK Government is serious about helping developers, then it needs to mat the tax breaks that France now delivers. Government support works, as the recent success of the Canadian games development industry has demonstrated.

Last month, the European Commission approved France’s proposal for a 20% production tax credit on video games – a move that paved the way for other EU countries to follow suit. The UK government, however, has stated that it’s not sure if a similar move would be good for the country, despite UK developers’ insistence.