Playing the system — delays to the new UK video games tax relief

Introduction of the new video games tax relief, originally intended to be available from 1 April 2013, has been delayed as the European Commission has expressed doubts that the relief is necessary to incentivise video game development in the UK and has suggested that the introduction of the relief may distort the market and reduce competition in the sector. 

The Commission’s challenge does not mean that the relief will be abandoned, but the Government will need to convince the Commission that the relief is necessary to remedy market failures in the UK video games sector. We are awaiting the Government’s response to the challenge, which should give a better indication as to when the relief will be available and if any changes will be made to address the Commission’s concerns. 

The Government’s proposals for the relief should, if introduced in their current form, offer UK developers of games for commercial release (including apps) the opportunity to receive a cash tax credit from HMRC, or alternatively to reduce their corporation tax bill. It is intended that the relief will be available to UK companies incurring expenditure in the UK on the development of a “culturally British” video game. Set out below is a summary of the Government’s current proposals for relief, and how the relief may benefit video game developers…

If you are registered and logged in to the site, click on the link below to read the rest of the Taylor Wessing briefing. If not, please register or sign in with your details below.

 

Briefings from Taylor Wessing

View more briefings from Taylor Wessing

Analysis from The Lawyer

  • merger deal

    Corporate crunch time: who will triumph at The Lawyer Awards 2014?

    As the equity capital markets rocketed back into favour and global M&A saw at least a partial return to form, there have been some rich pickings for The Lawyer’s Corporate Team of the Year award shortlisted firms in 2014. 

  • singapore orchid

    Singapore: Cash course

    The city-state is working hard to become a global wealth management hub, and law firms are gearing up for a prosperous new world

View more analysis from The Lawyer

Overview

5 New Street Square
London
EC4A 3TW
UK
http://www.taylorwessing.com

Turnover (£m): 228.00
No. of lawyers: 860
Jurisdiction: UK
No. of offices: 4
No. of qualified lawyers: 67 (International 50)

Jobs