TIGA has been lobbying for almost a year now in order to get tax relief for the U.K. gaming industry. Sadly, their campaign has not been successful. During a speech at Westminster today, Chancellor George Osbourne announced that the “planned tax relief for the video games industry will be canceled." He noted that the original strategy for the aid was “poorly targeted.”
There is an additional tax cut for corporations that may benefit smaller developers. Anyone who establishes a new business outside of London will be exempt from £5000 of National Insurance contributions on their first ten employees. This falls short of the original relief, but still provides some help.
TIGA is unhappy with the decision, noting that the lack of relief runs counter to "pre-election pledges made by the Conservative Party and by the Liberal Democrats to support and introduce Games Tax Relief." It intends to join forces with other U.K. game trade organizations, including ELSPA and Deloitte, to redouble their lobbying efforts.
