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July 26, 2016
The 20-page reports sets out a policy agenda for Government, Parliament and policy makers to consider as the UK begins the process of leaving the EU.
TIGA’s report says that the UK video games industry already contributes £1.1 billion to UK GDP and that this will increase with the right policy environment in place.
In summary, the report states that:
- the UK needs a favourable tax environment to encourage businesses to invest in the UK: the Government should consider reducing the rate of corporation tax to 17% in 2017 and enhancing Video Games Tax Relief and the R&D Tax Relief;
- access to finance: the UK Government should introduce a Video Games Investment Fund to enable more studios to grow and increase the amount of money that a company can raise via SEIS investment from £150,000 to £200,000;
- access to talent: the UK Government should ensure that EU workers already working in the UK are protected so that they can continue to work in the UK with the confidence that they are not going to be asked to leave the UK in the future;
- exports, trade agreements and tariffs: the UK Government should negotiate a trade deal with the EU that to the greatest possible extent avoids quotas, tariffs and other barriers to trade;
- VAT: the UK Government should negotiate an EU-wide measure to exempt small businesses from EU VAT regulations;
- intellectual property: the UK Government should consider introducing arrangements for the conversion or extension of an EU trade mark or registered community design to cover the UK;
- data protection: the UK Government should consider adopting the General Data Protection Regulation to ensure that companies based in the UK and doing business in the EU can continue to smoothly transfer information and data;
- higher education: the UK Government should make up any short-fall in funding following the UK’s departure from the EU;
- fiscal policy: the UK Government should consider increasing investment in infrastructure to cushion the UK from the shock of Brexit; and
- skills and training: The UK Government could consider extending the life of the Skills Investment Fund to maximise investment in skills in the creative industries.
Dr Richard Wilson, TIGA CEO, said: “We must all strive to ensure that the UK survives, revives and thrives outside of the EU. The high technology and creative industries, including the video games sector, can power ahead in a post-BREXIT world – provided that Government takes the right policy decisions and businesses rise to the challenge.
“TIGA’s Report sets out a practical, pragmatic and positive agenda for ensuring the UK games sector is a leading player in an industry that is predicted to be worth almost $100 billion by 2018. If the UK creates a favourable tax environment with an enhanced Games Tax Relief and R&D Tax Credit, increases availability of finance and improves access to talent, then the UK video games industry has everything to play for”. To read TIGA’s press release, click here.