Game end Joy

Richard Wilson, the industry trade body Tiga games has spent years struggling to get tax credits for developers in the UK. It examines the obstacles still facing the consequences and see all the studies in Britain

For a brief period last year, it seemed he had won Tiga. The trade body representing game developers in the UK have campaigned for tax incentives similar to those prevailing in Canada, USA and France, where studies are subsidized with tax and often the costs of employment. Initiatives that had been flourishing development, particularly in Quebec, in Montreal, with accommodation for the likes of THQ, Ubisoft, EA and Eidos.

Meanwhile, the UK is sliding towards the development of the World League games, editing decimated and many of their brightest minds degree abroad for higher wages and more glamorous projects .

In March 2010, however, Alistair Darling, announced plans to provide work to the development sector in the UK, with tax incentives. In recent months, it seemed that the campaign was a success Tiga. But then came the general election, and although both Conservative and Liberal parties had given lip service to the idea of ??tax support for the games industry, all dissolved in the emergency budget, George Osborne, where he discussed the case as "erroneous."

After the disappointment of the budget, some developers and industry experts wondered whether it was worth continuing the fight for tax credits. Games analyst Nicholas Lovell has consistently argued against tax cuts, saying they distort the market, creating artificial value, and they move too slowly to the rapid pace of industry play in encouraging creative stupidity .

But Dr. Richard Wilson, Tiga CEO, continuing his campaign, supported by many top developers in the games in the UK. Strongly stated that tax incentives are what is needed to attract foreign investment in the UK and sets a growth industry which pumps one billion a year into the economy.

We recently spoke with him about the tax credit issue, and how the battle has shifted from the charge of cutting Osborne.

Tiga catch up campaign to make the tax credits in the games industry in the UK? What happened in recent months?

TIGA is the only professional association in the UK has always supported the gaming tax relief, and progress has been made in the case of a specific tax relief sector for the production of games until 2011. We published a report, investment in the next edition, the second earlier this year, updated the evidence to support a tax break for games production.

Our research has shown that for five years, tax relief games is to create or maintain more than 9500 direct and indirect jobs, including more than 3350 jobs in the gaming industry). Also lead to £ 431 million investment in development costs and £ 394 million in tax revenue for the Treasury, at a cost of £ 194 million in tax cuts to the Ministry of Finance. In other words, games tax to help pay for itself.

Throughout the year, we highlighted in the case of gaming tax relief with the meetings of parliamentarians and civil servants. We have some important supporters. The Scottish Government and the Labour Party supported a tax break for games production. Some liberal Democrats and conservative support for the proposal. Now we update and review our case for tax relief targeted to produce games to be released in the near future.

have the current economic situation and the "austerity measures" being implemented by the coalition, had a negative effect on your campaign?

The economic slowdown has given politicians an excuse to sit down, testing and take no action. However, in reality, with the UK economy barely growing for almost a year, it is now time for the coalition government to reconsider a tax incentive to allow carefully selected highly qualified in the UK, high technology, video game industry to make a great contribution to economic growth.

recently sent a press release on the report e-skills and computer games. What the report found, and how it relates to Tiga?

This independent research confirms the essence of the argument Tiga. That is, tax incentives and other forms of study location public financial support and the influence of expansion plans and has a positive effect on profitability and competitiveness study.

The report provides empirical evidence to government financial support for the development of the game in countries like France and Canada is significant, widespread and powerful. Level, strategic public financial support - including tax credits / tax breaks - often influence the study abroad location and expansion plans. At the operational level, public support enables studios to increase profitability, increase productivity / competitiveness, increase its production of games, to improve the quality and attractiveness of their games and / or increase their market share.

addition, the provision of tax relief has a direct effect on recruitment and employment. Most study abroad are supported by the public were of the opinion that allowed them to attract / retain good staff, and / or increase domestic employment.

The report notes that studies supported the public in Canada receive aid equal to 23 percent of their turnover. No wonder some publishers around the world have increased investment in Canada at the expense of the United Kingdom.

But what evidence is there of British companies continue to be made by tax incentives offered elsewhere?

Between 2008 and 2010 the number of games in the UK in the video industry fell by nine percent. At the same time, the annual investment in the gaming industry in the UK fell by £ 458 000 000 to £ 417 million. Foreign publishers have reduced their investments in the UK and the redefinition of their operations abroad. For example, earlier this year THQ confirmed that Warrington Digital will be close, but at the same time, it has expanded its new office in Montreal, Canada.

tax credits have a significant impact on the fortunes of this sector. Labor in the gaming industry in Canada has increased 33 percent between 2008 and 2010, driven by tax credits. The industry in the UK, the games that have benefited from more investment and create more jobs with tax credits for game production.

This has modified its proposals for tax incentives the government lately? George Osborne said that the proposed measures were "erroneous." How did you approach this?

The priority for game developers / publishers-developers is financing. Tiga has put forward three proposals for key decision makers. First, to continue to campaign for tax relief targeted to produce games for the UK games industry to compete on an equal footing with countries such as Canada, France and the United States , which have tax advantages, whether at national or state. We are currently reviewing the proposal and publish it in the near future.

Second, we use the existing tax credits for R & D to be more effective and generous. The scope of R & D tax credits should now be expanded to include other related costs incurred in the development of a new game: local costs, the costs of the application for protection of intellectual property and design costs

How
proposed tax credit compared to those offered to the film industry?