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Tax relief for UK game industry

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Ruz
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  • Target_Renegade
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    Target_Renegade polycounter lvl 11
    good call, hope it kicks in as soon as possible.
  • Flava-Fly
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    Flava-Fly polycounter lvl 9
    They filmed me working for some 'computer-game-guy-working-hard' filler type stuff for the national news! See me looking very focused then a close up of my hands using a keyboard while the facts where presented. I just worked a double shift and look tired as hell but next stop Hollywood! Maybe a hand model?!
  • Ruz
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    Ruz polycount lvl 666
    Flava-Fly - you should have shuffled some papers and perhaps stroked your chin a little as if pondering :)
  • Bronco
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    Bronco polycounter lvl 18
    lol, flava your famous....and i missed it :(.

    Just hope all this gets through its hurdles and does what it intends, i.e gets more devlopers to stay/come to the UK, it all sounds promising though.

    I do however dread walking into a pub next week though....cheapest beer I can get round here is £2.70 at the moment...I expect to pay £3 as it is at any of the other pubs around here....one pub is charging £3.50 for larger..... god only knows what its going to be next week.

    Still could be worse, I could be a cider drinker.

    John

    P.S Flava im gonna guess due to your avatar that your up at RTW, I just got confirmation im onto the APB beta, unfortunatily will miss tomorrows server periode but will hopefully catch sunday nights....looking forward to seeing what you guys have been doing with your lives :)
  • metalliandy
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    metalliandy interpolator
    I really hope the next Government (who ever it is) pulls through with this...its about time :)

    @Flava-Fly,
    What channel and time was it on?
  • Ruz
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    Ruz polycount lvl 666
    Well the tories were promising the same thing so even if cameron wins ( no not james cameron)
    then it should happen.
    It all depends as the tories will have to make swinging cuts to get us out of our current debt situation, so i hope this isn't the first casualty.
  • easterislandnick
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    easterislandnick polycounter lvl 17
    From what I've read the projects that receive this funding will need to reflect a British outlook, its a points based system like the one for film production. If it's set in Britain and has British characters you will get tax relief, if not, you won't. It worked for low budget films quite well but I can't see it working in games, if we have to sell games to the US to make enough money to pay the bills are they going to want to play British characters set in the UK? Probably not! No science fiction either! It may temp Square/Eidos to bring Lara Croft back to the UK and there might be another GTA London though!
  • Ruz
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    Ruz polycount lvl 666
    wow that seems to be a pretty narrow criteria easterislandnick. I knew there would be a catch:(

    What there needs to be is a comprehensive system of tax relief for British companies so we can compete on an even playing field
  • Ged
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    Ged interpolator
    sounded like good news until I read what easterislandnick said. I dont see how imposing the same restrictions as the film industry makes any sense whatsoever. I mean a lot of what we play is based in some fictional place with fictional characters and nationality eg.top ten sellers of last year according to CNBC

    street fighter 4
    Halo wars
    resident evil 5
    call of duty world at war~(ok this one has a location/ nationality)
    killzone 2
    mario kart wii
    pokemon platinum
    wiiplay
    wiifit

    only one of these is set in any real world location with characters of a specific nationality. I read the comments on one news site and someone suggested that as long as local british actors and businesses are involved it could pass the cultural test and get the tax breaks but Im not sure of this.
  • easterislandnick
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    easterislandnick polycounter lvl 17
    Edit -

    http://www.develop-online.net/news/34291/Has-Labour-paved-the-way-for-GTA-London

    Its not set in stone about the British criteria, this is from develop magazine...

    "Though the exact criteria of the tax break requirements is yet to be decided, the Department for Culture, Media and Sport has indicated that it will follow a similar model to that currently applied to the UK film industry.

    Under that model, those seeking relief must score at least 16 points out of a possible 31 in a ‘culturally British’ test."
  • Farfarer
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    A "culturally British" test? Jesus wept.

    Do you prefer to drink coffee or take tea?

    Do you like your toast done on one side or two?

    :/
  • metalliandy
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    metalliandy interpolator
    Well that sucks....
    I can see it now, Brink at Butlins-Olympic swimming pool edition.
  • crazyfool
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    crazyfool polycounter lvl 13
    Well ........I was super excited lol, was thinking we were gonna start getting some financial help and studios were gonna start booming again with new projects, some new startups, high profile IPs, more jobs. But it turns out they want to promote britishness!?!

    I really hope this isnt the case. Doesnt really make sense how they were saying the UK is one of the top countries (4th) for high profile development and then giving an example of GTA4 as one of these titles. Im sure theres an english character in GTA somewhere but this is a game based in AMERICA!!!!!

    I love our government at the moment, they say somethings awesome but theres always a stupid catch that fudges everything up.
  • Flava-Fly
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    Flava-Fly polycounter lvl 9
    I think this is a great time to be in games here in the UK, the news guy in yesterday said the initial calculations (i.e the overblown government election estimate) is 3500 new jobs in the industry. If its even close to that however it means good things for new graduates and opportunity for experienced veterans.

    @Bronco good work on getting hooked in I hope you enjoy the game and please feedback on the community forums if you want something changed/added/(nerfed?!) the fresh eyes are making really positive changes!

    @Metalliandy was on Scotland Today
    http://news.stv.tv/video/stv-news-at-six-tayside-20100324/ - jump to 13:20 for some games tax banter! I don't even usually sit there just came down to clear up some other work, camera man must have seen my raw sex appeal!
  • metalliandy
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    metalliandy interpolator
    Nice man :D

    Lets hope this all comes to something after the election.

    Out of interest, how does this compare to other countries tax breaks when it comes to game dev.?
  • easterislandnick
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    easterislandnick polycounter lvl 17
    The criteria for film points are set out here, you need 16 to get get tax relief...

    http://www.ukfilmcouncil.org.uk/culturaltestpoints
  • Zwebbie
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    Zwebbie polycounter lvl 18
    If this means we'll be hearing more British accents and less American ones in games, I'm all for it!
  • Target_Renegade
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    Target_Renegade polycounter lvl 11
    World War 1 and 2 games would certainly qualify, not sure if we've had enough of those already though. I really enjoyed The Getaway when it first came out, enjoyed it even more because I was living in France and needed my British fix.
  • IEatApples
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    Flava-Fly wrote: »
    http://news.stv.tv/video/stv-news-at-six-tayside-20100324/ - jump to 13:20 for some games tax banter! I don't even usually sit there just came down to clear up some other work, camera man must have seen my raw sex appeal!

    Haha, I know Chris sitting beside you in that shot.
  • poopinmymouth
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    poopinmymouth polycounter lvl 19
    From what I've read the projects that receive this funding will need to reflect a British outlook, its a points based system like the one for film production. If it's set in Britain and has British characters you will get tax relief, if not, you won't. It worked for low budget films quite well but I can't see it working in games, if we have to sell games to the US to make enough money to pay the bills are they going to want to play British characters set in the UK? Probably not! No science fiction either! It may temp Square/Eidos to bring Lara Croft back to the UK and there might be another GTA London though!

    I really hope they do something like this. So tired of other countries completely suppressing their culture, accents, languages, architecture, ethnic types, etc and catering to the American market. STALKER was russian as all get out, and I loved it for it. I want to see more games like that. It kills me to see Crytek just make another US centric shooter when it could have all kinds of awesome german influences.

    Even though UK culture isn't that radically different from the US, I'm all for some British centric games, and it's not like Americans are so xenophobic they'd be unable to enjoy a game with british characters, locations, and themes. I mean the Bond property does well in the US, why can't games?
  • Del
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    Del polycounter lvl 9
    ~ After reading the Cultural Test Points system. I actually don't think it would be a huge problem to meet the criteria. You even get points for making sure your staff are mostly British, which could help make a lot of outsourcing from across seas unattractive. Which will help British artists.

    I even worked out that you could actually meet 16 points without it being set in the UK, having a british lead character, or basing it on a british subject matter. (Not that I'm against these things)

    Plus, Sword and Shield games are lame if they have US accents floating about.
  • Target_Renegade
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    Target_Renegade polycounter lvl 11
    Britain definitely needs a game boost from when it was Amiga, Amstrad and C64. Still lots of great independent companies left like Team 7, Frontier dev. Lionhead. Shame Bulldog aren't around, would have loved another Syndicate. Dreamer, i agree, there are lots of the criteria a company could meet. If a British company hired an American script writer would that still count as points+?
  • MattQ86
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    MattQ86 polycounter lvl 15
    Shame Bulldog aren't around, would have loved another Syndicate.

    http://www.destructoid.com/starbreeze-confirms-cancellation-of-a-title-168654.phtml

    Rumor has it Starbreeze was working on a Syndicate game for EA, which sounds like it would be amazing. Hopefully the game that got canceled has something to do with Vin Diesel or gothic mafioso types.
  • claydough
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    claydough polycounter lvl 10
    From what I've read the projects that receive this funding will need to reflect a British outlook, its a points based system like the one for film production. If it's set in Britain and has British characters you will get tax relief, if not, you won't. It worked for low budget films quite well but I can't see it working in games, if we have to sell games to the US to make enough money to pay the bills are they going to want to play British characters set in the UK? Probably not!

    puke...
    I would think the opposite to be true. I guess it goes both ways.
    Culturally we also have our lips n toungues so far down yer sphincters...
    That when one a yer Royalty members croaks it might as well be
    the queen/princess of America.
    ( if I never hear another redneck sobbing "princess" agin', it will not
    have been soon enuff )
    ( say, compared to another "important/pivotal" late 90's Royal death like that of
    King Hussein of Jordan? Who? Saddam Hussein of Jordan? )

    From a muddy American person's point of view I would say,
    Don't werry, We can be the most shamelessly Anglophile peoples on dis planet.

    ( The next award fer best picture goes to the period puketure with the british dialect )

    errrrrr... Puke.



    ( ...not really, really to anything above. jes a slight alternative reality take )
  • crazyfool
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    crazyfool polycounter lvl 13
    I would rather they just support the uk games industry as a whole instead of making us make British based games for the sake of promoting our country. I have lots of friends made redundant or contracts not being renewed because studios don't have projects or just can't afford them anymore. A tax relief would go a long way for these companies and individuals, and making a successful franchise in my eyes promotes uk games development, like gta, burnout, fable, batman, quake, buzz, total war, pgr, heavenly sword, worms etc.

    And in edge magazine this month they have a very interesting article on uk games developers and publishers or lack of. The government should be looking into why it's so expensive to develop in the uk compared to other countries and try to get some publishing houses back instead of trying to promote Britain . Don't get me wrong, any help the uk can get in games development is good but why narrow it down so much.

    Reminds me when the government came up with that amazing, trade in your old car and get £2000 or somet off a new car, what idiot thought that up seriously!!!! If we are in a recession and we got a car that's worth under 2k then where the fudge we gonna get 10k to buy a new car, most people are lucky enough to pay for their road tax which has gone up again!!!!!
  • undoz
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    The cultural criteria is just a justification for the law to pass the european union fair trade rules. I don't think that it will be imposed too strict.
  • poopinmymouth
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    poopinmymouth polycounter lvl 19
    crazyfool wrote: »
    I would rather they just support the uk games industry as a whole instead of making us make British based games for the sake of promoting our country. I have lots of friends made redundant or contracts not being renewed because studios don't have projects or just can't afford them anymore. A tax relief would go a long way for these companies and individuals, and making a successful franchise in my eyes promotes uk games development, like gta, burnout, fable, batman, quake, buzz, total war, pgr, heavenly sword, worms etc.

    And in edge magazine this month they have a very interesting article on uk games developers and publishers or lack of. The government should be looking into why it's so expensive to develop in the uk compared to other countries and try to get some publishing houses back instead of trying to promote Britain . Don't get me wrong, any help the uk can get in games development is good but why narrow it down so much.

    Reminds me when the government came up with that amazing, trade in your old car and get £2000 or somet off a new car, what idiot thought that up seriously!!!! If we are in a recession and we got a car that's worth under 2k then where the fudge we gonna get 10k to buy a new car, most people are lucky enough to pay for their road tax which has gone up again!!!!!

    Yeah but how specifically would a tax break, which in a round about way costs the rest of the tax payers money, be justified if it doesn't have any long term benefits other than enriching those game companies? It could be argued that increased nationalism would keep more brits from emigrating, and increase national morale, which is worth money spent. If it's just a handout, it's only the job benefits of the actual employees at the studios, which is such a tiny fraction of the population it's not really cost justified.

    Obviously enforcing propaganda would be poor taste, but putting incentives for making the games more culturally relevant in order to get sweet tax relief isn't so horrible.
  • Kwramm
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    Kwramm interpolator
    adding points for "Britishness" kinda defeats the purpose of attracting international developers who set up a shop and pay taxes and create jobs. Companies go to Canada because it's cheaper, no matter what sort of game want to produce.

    My former employer Funcom moved to Canada and they brough a LOT of staff from Norway who weren't Canadian. But I guess the more business in Montreal the better, and Funcom might actually start hire Canadians too as the studio grows. I don't think the UK system would allow things like this.
  • JonMurphy
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    JonMurphy polycounter lvl 18
    A quick look at the "list of productions which have received final certification as a British Film from the UK Film Council, between 1 April 2007 – 28 February 2010 under the Cultural Test.'" should relieve fears of having games set in the UK with British lead characters -

    Slumdog Millionaire
    Hellboy II: The Golden Army
    The Dark Knight

    If the tax break encourages publishers to enlist British studios for production, I'm all for it. Anything has got to be better than scratching around for whatever contract we can get at the moment, hoping that payments arrive in time so we can pay the rent.
  • Ruz
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    Ruz polycount lvl 666
    Jon, do you figure that contractors will also get extra tax relief because they work on games projects?
    BTW re the situation for contractors right now, it sucks:(
    This is my 3rd year freelancing and it has been crap of late.
    Even daily rates have gone down when working on advertising or film stuff
  • Calabi
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    Calabi polycounter lvl 12
    All they have to do is put a token cockney in somewhere. Stuff him in the corner, or as an unlockable, know one will ever notice and you can have your game about anything.
  • Darth Tomi
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    Darth Tomi polycounter lvl 12
    Tax breaks are nice and a step in the right direction but they ain't gonna work if nobody is buying games. Aren't sales of games off by something like 40%? Until the economy picks up and people have disposable income to spend on video games tax breaks aren't gonna help much.
  • metalliandy
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    metalliandy interpolator
    Well that sucks :/

    George Osborne has just announced that there will be no tax relief for the UK games industry.
  • IEatApples
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    Thats bad news, ubisoft were just requesting it too before the budget.

    http://news.bbc.co.uk/1/hi/technology/10374867.stm
  • Target_Renegade
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    Target_Renegade polycounter lvl 11
    and heres me thinking the conservatives might have an idea about business, considering that the games industry is huge and showing steady growth.
  • metalliandy
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    metalliandy interpolator
    I think the idea was to target cuts that would affect a wider range of UK businesses rather than just focusing on any particular industry.

    Its a real shame but i guess this method makes sense as when the whole economy becomes healthier the games sector will gain strength along with it.
  • Target_Renegade
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    Target_Renegade polycounter lvl 11
    I agree, increasing the lowest national insurance thershold might increase the number of lower paid junior roles. Heres hoping:)
  • rolfness
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    rolfness polycounter lvl 18
    I think under the current climate its the right thing to do, the main priority is to improve the economy as a whole, giving a specific industry tax breaks can be done later on.
  • Farfarer
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    http://www.develop-online.net/news/35208/Game-funding-endangered-as-RDAs-face-abolishment

    And more fun cuts as regional development agencies look to be being abolished...
  • crazyfool
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    crazyfool polycounter lvl 13
    thats a shame but not many companies could have capitalised on it anyway due to all the parameters needed to get it.
  • Canadian Ink
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    Canadian Ink polycounter lvl 12
    That's really a shame. I think Tax breaks and government incentives are whats helping to make my country such a gaming mecca these days. They are definitly the reason why I live on a tiny island but there is still 4 game studios here.
  • Mark Dygert
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    Considering how doom and gloom the proposed budget cuts are sounding its no shock the industry isn't getting the tax breaks.

    If Bush taught the world anything it was how not to balance a budget through tax breaks.
  • danshewan
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    danshewan polycounter lvl 8
    Well, the proposed National Insurance 'holiday' period of up to £5,000 per-employee for new businesses could stimulate the number start-ups, but given the bleak state of the nation's financial situation, I'm not sure how many potential new developers would actually benefit from this scheme, or how many British indie developers would actually consider formally opening doors here as opposed to contracting for overseas studios.
  • Squiggers
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    Lets just say that I was really, really considering setting up, but without the tax breaks it makes it a lot bleeding harder to do it.
  • Mark Dygert
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    The National Insurance holiday sounds good, but what happens when the holiday is over?
  • danshewan
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    danshewan polycounter lvl 8
    Well, when you consider that it's only available to new businesses outside of the South-East of England, then only for companies of less than ten people, and that standard employer national insurance contributions will resume after the twelve months, it's not all that great - especially when you take production and development life cycles into account.

    One of the key 'benefits' of this scheme that's being touted is that, essentially, new businesses could potentially gain a 'free' employee in terms of the money saved in NI contributions, and by choosing to employ and pay an additional member of staff as opposed to NI contributions. However, given the fact that normal NI contributions will resume after twelve months, if things aren't going very well for the new studio (or business, in other industries), or growth and investment aren't ramping up as quickly as they could be, the additional pressure of taking on an extra member of staff could be more harmful than helpful in the mid-to-long term.
  • Richard Kain
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    Richard Kain polycounter lvl 18
    And...now there aren't going to be any tax breaks.

    I imagine many of the Britain-based polycounters are pissed. Osbourne pretty much went back on campaign promises, and has announced that none of the game industry tax breaks originally proposed are going to come to pass. Very sad.

    Well, it looks like a lot of game industry companies and professionals previously located in England will likely be pulling up stakes and moving to Canada. The Canadian government has been very pro-active in appealing to the game development industry. They even have policies in place to make it easier for UK-based game companies and employees to re-locate. This shortcoming on the part of the UK Parliament could end up being a windfall for our neighbors in the North.

    And I would remind any UK devs that US States like North Carolina are also very welcoming to prospective developers. I hear Raleigh is becoming a technological hub for the East coast. Since your own government doesn't seem interested in lending a hand, maybe its time for a trip across the pond.
  • Squiggers
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    Yeah, its got really tempting - despite perhaps being able to get around £50K as start up funds. That is.. if I set up in Scotland/Wales. Its incredibily frustrating, to say the least.

    Well, Mr Cleggy Weggy (My MP and the Deputy PM now) has a letter going his way on my opinions - I got some good, well thought out responses before now when I've contacted him in the past.
  • chris89
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    chris89 polycounter lvl 10
    we're pissed :)
    No tax breaks and even a rise of the VAT :(

    Time for all the brits to have a serious look at canada perhaps?
  • metalliandy
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    metalliandy interpolator
    I didnt think the VAT rise was too bad really...unless you are buying something that costs loads i doubt Joe Bloggs will even notice that much...its the first rise since the 80s if i remember correctly and wasnt super unexpected.
    Imagine how Sweden and Iceland feel with 25% :O
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