UK moves forward with game tax relief

[Flickr: Bashed]
Following exhaustive lobbying by TIGA, the UK will implement tax relief for video game developers. The change will allow game companies to keep more profits from successful products and receive tax credits to reduce losses when their games don't perform well.

TIGA CEO Richard Wilson believes that the relief will "protect 3,550 graduate level jobs, increase or safeguard £457 million in development expenditure and encourage developers to adopt new business models and create new intellectual property." He continued that it was a "decision at the right time for the right industry."

The UK games industry has been hit particularly hard by the current economic climate and further affected by a lack of recognition for the sector. In stark contrast is Canada, with its favorable tax breaks, as proven once again this past week as Warner Bros. announced it was opening a major studio in Montreal.

This article was originally published on Joystiq.