The European Commission has approved the British Games Tax Relief (GTR) for game developers. After an in-depth investigation, the Commission concluded that the measure, providing incentives to developers to produce games meeting certain cultural criteria, is in line with EU objectives.

According to TIGA, the trade association representing the UK video games Industry, the measure will lead to an estimated £188m in additional investment for the UK games industry over the next five years. This will finally allow it to compete on a level playing field in the global video game market, and decisively reduce the cost of games development in the UK.

Guillaume de Fondaumiére, the president of European Game Developer Federation (EGDF) commented:
“This is a great result following many years of joint effort by TIGA, EGDF and all its other member associations to get games acknowledged as cultural products. Together we will continue our efforts to secure recognition of all games as cultural products and to support initiatives introducing tax relief schemes for games in Europe”

Dr. Richard Wilson, TIGA CEO stated:
“This is a superb decision by the EU Commission and magnificent news for the UK video games industry. It is also a striking success for TIGA, for its members, and for the wider video games industry that TIGA represents. GTR will create jobs, boost investment and enable the production of more British video games.

“This victory, the approval of GTR by the EU Commission is the culmination of a relentless and determined seven year campaign which was created and led by TIGA. The Commission is to be congratulated for this excellent decision. The UK Government, the EDGF, The All Party Computer and Video Games Industry Group in the Westminster Parliament, the Cross Party Group on Video Games Technology in Holyrood, the Labour Party and the Scottish National Party also all deserve full recognition for their ongoing support for this critical measure.

“TIGA now looks forward to working with other interested parties on the implementation of GTR to ensure UK games developers and the wider economy reap the full benefit of this landmark moment in the history of our industry.

“Thank you and congratulations to everyone who helped win GTR for the UK games industry.”

Hendrik Lesser, the vice-president of G.A.M.E, the trade association representing the German games industry, underlined:

“This is awesome news and acts as a precedent for the whole of Europe. This is European collaboration and support for each other at its finest. We can be happy and proud that we have strong members within EGDF who support each other. This is what I, as a delegate from the German GAME, will fight for within GAME and the EGDF.”
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