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UKIE Responds to Cultural Test for Tax Relief for Games in the UK

October 30, 2012 by Jordan Webber

Tax breaks will be awarded to games that use UK service providers

George Osborne, the UK's Chancellor of the Exchequer, announced in March this year plans to introduce a tax relief system for British video games similar to that already in place (and set to continue until at least 2015) for the film industry. The Department for Culture, Media, and Sport (DCMS) is currently working on a cultural test to decide which games will qualify for tax breaks, via a points-based system. Yesterday, The Association for UK Interactive Entertainment (UKIE) gave their response.

After speaking to representatives from games business both big and small, and sending out an online survey, UKIE has come up with several points to bring to the attention of the DCMS. A few of the points focus on comparisons with the cultural test for British films, and seek to bring the cultural test for games in line. Films, for example, win four points for being made in the English language, whereas the suggested test would only award two for the same in games, and UKIE recommends the latter be brought up to the same level.

Putting aside the fact that this is all about money and strict parameters, the formation of this cultural test raises some interesting questions about what a piece of entertainment must do in order to reflect local culture. British voice actors, coders, and the other creative minds behind these games are sure to benefit if these plans do go through next year, and especially if they last as long as those already in place for films.

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