House of Lords backs UK development tax breaks

The UK’s struggling bid for game development tax relief was given a ray of hope today as the initiative was backed in a report by the House of Lords Communications Committee.

The committee’s report stated that it “recognised the claims of the videogame industry for support in the face of foreign government-subsidised competition, and recommend that the Government consider providing tax incentives for videogames production.”

Game industry body Tiga said that the announcement ties in with an increasing change of heart at Westminster.

“It is very encouraging that the cross-party, highly respected House of Lords Communications Committee has recommended that the Government should consider providing tax incentives for videogames production,” said the group’s CEO Richard Wilson.

“We know that the Department of Culture, Media and Sport’s priority is to introduce game tax relief,” he added.

Wilson and Tiga members had put the case for game development tax breaks to the Committee back in July last year.

Tiga chairman Jason Kingsley – also the creative director at Rebellion Studios – said that the Lords’ recommendation “demonstrates that Tiga’s relentless campaign on behalf of the UK games industry is making an impact.”

The House of Lords – by convention – acts as the review chamber of Parliament. Bills put forward in the Commons will be heard (and often amended) in the Lords until a balance of ideas between both chambers is reached. Yet it is not tied to the executive branch of parliament – the Government – meaning it can only recommend ideas to put forward.

[TIMELINE: UK TAX BREAKS]