Deloitte comments on European Commission's in-depth state aid investigation into the proposed video games tax relief
17 April 2013
Rachel Austin, Deloitte tax director commented: “Video games developers will be disappointed that the European Commission has launched an in-depth state aid investigation into the proposed video games tax relief that was first announced in Budget 2012. State aid approval for the animation and high-end television relief announced at the same time was given at the end of March, allowing it to commence on 1 April 2013 as planned. Whilst not unexpected, it is a shame that the video games relief will be subject to further delays while the investigation takes place.
“We support the government’s continuing commitment to the video games relief and the work by the games industry bodies to provide the evidence required to address the Commission’s concerns and bring the investigation to a successful conclusion. We are encouraging all gaming companies to respond to requests for evidence by TIGA and UKIE, The Association for UK Interactive Entertainment, to enable the government to respond to the investigation by the Commission’s deadline of 15 May 2013.
“It is not unusual for new tax reliefs to be subject to detailed state aid investigations. The existing UK film tax relief was investigated before its introduction in 2007 and the French video games tax relief was the subject of a year-long investigation prior to receiving approval. We are hopeful that the UK video games relief will receive approval in due course, providing a much needed stimulus to the UK video games industry. If approved, it would allow UK companies to compete on a level playing field against other countries that already offer incentives.”
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