Game development studios in the UK have just received great news if they qualify for the rules: The European Commission has approved tax breaks for certain developers in the region. MCV is reporting that these benefits should affect roughly 25 percent of games created in the UK.
The official statement read, "The European Commission has concluded that UK plans to grant certain tax relief to producers of video games are in line with EU state aid rules.
"The Commission has found in particular that the measure provides incentives to developers to produce games meeting certain cultural criteria, in line with EU objectives."
Games that qualify for the tax breaks are those that have the most roots in regional culture, both in terms of content and the development team itself.
Studios much reach a certain quota of factors to qualify, such as whether their game was developed in the UK, where the developers originate from and the roles of natives in the team. If your game's content explores the regional culture or contributes something to it (having British characters, setting the game in the UK), that helps you qualify for tax relief as well.
The United States saw similar laws passed in 2011, with the government subsidizing video game production with deductions, write-offs and credits. According to The New York Times, these laws made video game production one of the most highly subsidized business sectors in the country.
Canada offers game developers great incentives as well, making it one of the best places in the world for studios to set up shop. These new tax breaks should entice more developers to stay in the UK, rather than move abroad to save money.
Source: IGN
