UK government to offer 25 percent tax relief for game studios depending on their game's design

The U.K. government will offer game studios 25 percent off in tax relief from April 2013 subject to state approval and subject to a consultation on their game's design, according to the Autumn Statement released by the U.K. Treasury.

The tax break will be available to studios large and small and eligibility will be determined by whether a project meets certain cultural requirements, according to CVG. The tax break will also be made available to other creative digital industries such as film and television.

The Treasury report states:

Budget 2012 announced that the Government will introduce corporation tax reliefs from April 2013 for the video games, animation and high-end television industries, subject to state aids approval. Following consultation on their design, the Government will ensure that the reliefs are among the most generous in the world by offering a payable tax credit for all three reliefs worth 25 per cent of qualifying expenditure.

The tax relief is expected to come into effect in April 2013, with full details being revealed on Dec. 11, 2012.

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