Support for video games industry in Budget welcomed by Dundee group

Support for the video games industry outlined in the Budget has been welcomed by a Dundee group.

Chancellor Jeremy Hunt announced the video games tax relief will be replaced with the video games expenditure credit.

It will have a rate of relief of 34% on 80% of qualifying expenditure.

The move has been welcomed by Paul Durrant, director of the Dundee-based UK Games Fund.

Mr Durrant was pleased to see the impact of the industry recognised.

Increase in relief allows firms to grow

He said: “As a Dundee-based organisation that works to support the growth of games developers across the UK, we welcome the increase in relief announced.

“It’s good to see the chancellor recognise the importance of our sector to the UK economy in the Budget.”

Mr Durrant said this will help many of the companies supported by UK Games Fund to grow.

He added: “This will lead to further, positive economic impacts driven by the strength and potential of the UK games industry.”

Credit system ‘welcomed with open arms’

Mr Hunt has previously said he wants the UK to become the next Silicon Valley. The region of California is home to some of the world’s biggest tech companies.

The chancellor also announced an “enhanced credit” scheme to support scientific research and development.

That will apply to any small or medium-sized business that spends 40% or more of their total expenditure on research and development (R&D).

Eligible businesses will be able to claim a credit worth £27 for every £100 they spend.

Sharon Blain, tax director at PwC Scotland, said it will be “welcomed with open arms” in Dundee’s “thriving” gaming industry.

She added: “By rewarding investment in tech, plant and equipment, the chancellor is playing to some of our real growth sectors.”