Dundee’s video games industry has been given a major boost, after plans to introduce tax relief for developers took a giant step forward.
The UK Government opened consultation on plans to implement tax breaks for games firms, which should be in place next year.
The Department of Culture, Media and Sport is now seeking views on a proposed culture test which will identify which British video games, animation and high-end TVs will be eligible for the tax breaks.
”Government is committed to supporting these creative and dynamic sectors by introducing tax reliefs for these industries,” said Creative Industries Minister Ed Vaizey.
Dundee West MSP Jim McGovern said the consultation, which closes on October 29, is an important milestone for the games industry.
The previous Labour government had announced plans to introduce the tax relief before the 2010 General Election after a Courier campaign but the proposal was scrapped once the coalition government took office. However, Chancellor George Osborne resurrected the scheme earlier this year.
In the UK, the video games industry employees 28,000 people. Game sales contribute £400 million per annum to GDP and generate over £1.7 billion in sales.
Mr McGovern said: ”I am pleased that the consultation has now been launched and we can move forward the process of introducing these vitally needed tax incentives for the computer games industry.
“It is a pity that it took some time to reach this stage, but I am confident now we are here that the industry, business and the communities that benefit from this sector will have their say. I hope the government listens carefully and comes up with a policy that is suitable.
”This has been a long-running campaign, but I am hopeful that we can now see the light at the end of the tunnel.”
Dundee West End Councillor Richard McCready called for Dundee City Council to make its voice heard in support of the city’s games industry.
He said: ”I think that the city council should be very strongly supporting the implementation of tax relief for this industry. I hope the council will send out a strong message making clear that we support this industry in Dundee.”
Dundee City Council administration leader Ken Guild said: ”The council played its part in successfully lobbying for the changes that the UK Government is currently consulting on. We are looking at the consultation document closely.”
Games will need to secure 16 out of 30 points in order to pass the cultural test and so be eligible the tax relief. They will be judged on criteria including their cultural heritage whether or not they feature British or European characters or settings and if they are technologically innovative.
Dr Richard Wilson, chief executive of games trade organisation TIGA said: ”This draft cultural test is good news for the UK video games industry.
”It will promote the production of games that might not otherwise be made and help to secure a sustainable UK video games sector.”