UK Budget 2011: R&D tax credits to raise 200%

Speaking in the Houses of Commons to reveal details of the UK Budget, Chancellor of the Exchequer George Osborne has promised to increase the R&D tax credit by 200 per cent starting in April this year.

The R&D tax credit will also be raised by 225 per cent in 2012.

The raise is up 175 per cent, which is in line with the recommendations forwarded by TIGA, when the UK trade body suggested last month that changes to the R&D tax credit system could bring “60 to 75 per cent” more value to UK games studios.

TIGA’s recommendations suggested specifically a 200 per cent increase.

The 2011 Budget address is currently ongoing.