"The new tax rules are likely to be based on the existing tax system for UK film producers which is generally thought to have brought about £1billion of investment into the UK last year. If the Chancellor's latest Budget proposals give a similar boost to the video games, animation programmes and 'high end" TV programmes, this will be an excellent boost for the UK's creative industries. We have yet to see the detail, but this sounds very promising," says Andrew Wilkes, head of London corporate tax, Smith & Williamson, the accountancy and investment management group.
The government has announced its intention to introduce tax reliefs for the production of video games, animation programmes and "high end" television programmes in the UK. This will be welcomed by these creative industries and the government alike who have been concerned by domestic projects being moved overseas to countries that offer tax breaks and by leading overseas producers feeling reluctant to come to the UK in the absence of these tax breaks.
Although the detailed rules have not been announced (there will now be a period of consultation on their design), they are likely to be based on the existing tax reliefs for UK film producers, which the government believes has attracted £1bn of investment in film to the UK last year.
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