Non-Committal on UK Tax Breaks…

11 06 2008

(Edited slightly)

Parts of the UK games industry are right now trumpeting an apparent victory in the fight for UK tax breaks, with the UK treasury basically promising to “look into it”:

The Government is conscious of the recent approval of a cultural tax relief for games in France and is working with the UK industry to collect and review the evidence for introducing such a credit in the UK.

Develop headline this with a very upbeat sounding: “UK Treasury promises tax break action

It is progress to have the Treasury looking into it rather than just BERR, but a favorable outcome is far from guaranteed. “We’re looking into it” is pretty much what was said by Margaret Hodge at the London Games Festival last October, and things have been moving very slowly on this issue ever since. Most stories have consisted of TIGA and ELSPA continuing to make noise, and the government offering little beyond non-committal.

At the LGF, Hodge also floated the idea of challenging foreign tax breaks for the games industry at the WTO, but every time the EU approve a cultural exception given to the games industry by a member state, if it doesn’t weaken the case it certainly raises the overheads of making it.

(CC image of Gordon Brown by loiclemeur)



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