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UK game devs start to claim 'culturally British' tax breaks
Developers across the UK are donning their Union Jack dresses and piling up on their tea stocks, now that they claim the long-campaigned for "culturally British" tax breaks. We jest of course, but as of this week, qualifying studios are able to claim up to 25 percent on 80 percent of their production costs, a huge change that trade association TIGA believes will lead to £188 million (around $312 million) in additional investment into the national games industry over the next five years. The still bizarre fulcrum in all this is the Cultural Test itself, which was a sticking point for the European Commission who sees it as vital to the aid. As the EU Commission put it in March, "the proposed cultural test ensures that the aid supports only games with cultural content without leading to undue distortions of competition."
UK government plans tax breaks for 'culturally British' games
The long battle for UK tax breaks for games industry pros may finally be over, with the government stating in its recent Digital Britain report that it "has committed to work with the industry to collect and review the evidence for a tax relief." Here's the kicker, though. In order to be worthy of these potential tax breaks, the games must be "culturally British."What this means is unclear, but games would need to be put through a test to determine whether they can be deemed "culturally British," in a way similar to the UK film industry. Certain British games, such as LittleBigPlanet -- whose narrator is a British national treasure -- and Fable 2 -- with its cockney characters and very English humor -- would be shoo-ins. Other games, such as Burnout Paradise, might need to make a few changes. Perhaps we'll see London landmarks like Big Ben or the London Eye introduced in a future DLC pack.
