Games companies in the UK can now apply for tax relief starting today with the ability to claim up to 25% of production costs.
The tax relief has been a long time coming for UK developers and publishers as it first had to be approved by the UK government and then approved by the EU who initially felt it wasn’t required. However, it was finally passed in April this year and takes effect from today.
Applicants will have to undergo a cultural test to find out whether they are eligible to the tax relief before it is awarded. The UK government estimates that this new relief will provide around £35 million ($58.2 million) of support to video game studios each year.
The UK houses some 500 game studios which employ around 9000 people. Video game sales in the UK brought in approximately £2.19 billion ($3.6 billion) in 2013.