UKIE calls on government to modernise Video Games Expenditure Credit ahead of Autumn Budget
By “Revamping VGEC is crucial to guaranteeing the UK stays a competitive environment for establishing and expanding gaming enterprises,” states UKIE CEO.
Image credit: Unsplash via Nathaniel Cherian
Prior to this week’s Autumn Budget, UKIE is appealing to the UK government to update the Video Games Expenditure Credit (VGEC).
The organization is additionally advocating for a new fund to tackle the £500,000 to £2 million domestic growth capital shortfall, as well as incentives to deter studios and talent from moving to jurisdictions with superior tax credits.
“UKIE has conducted ongoing dialogue with the government regarding these priorities, collaborating with our members and industry allies to gather the necessary evidence and make a compelling case for changes that will assist British gaming enterprises in competing, attracting investments, and expanding,” UKIE CEO Nick Poole conveys to GamesIndustry.biz.
Tax system modernization
UKIE, TIGA, and the UK Video Games Council have suggested a scaled ‘games growth’ fund, providing 53% support for initiatives with budgets up to £15 million, and 39% for those ranging between £15 million and £23.5 million.
“This would offer more competitive backing for studios of various sizes and facilitate increased investment into UK game development,” Poole asserts. “We are also advocating for changes to the existing limitations on qualifying expenditure, currently set at 80%, which restricts the available support even when substantial development activity occurs in the UK.”
UKIE CEO Nick Poole | Image credit: UKIE
“The regulations should also reflect how contemporary games are produced, encompassing live-service development, downloadable content, co-development, and projects brought into the UK.”
Under the present regulations, Poole emphasizes that there are “numerous types of games and production methodologies where the existing rules can pose obstacles or ambiguity.”
He points out that co-development initiatives frequently struggle as “international collaborators, or work conducted in the UK, may face inquiries about qualifying expenditure and eligibility,” in addition to how ongoing development for live-service games and DLC “does not always align seamlessly with regulations intended for more conventional production models.”
One UK studio head confirmed to GamesIndustry.biz that the existing VGEC guidelines rendered a considerable portion of the studio’s projects ineligible,
