TAX NEWS - 2010

UK Tax Relief: Big gaming firms to abandon UK after tax relief cut

The UK government's plans to ditch a planned tax relief for the games sector could stop Activision Blizzard from investing in the UK, according to the company. Activision CEO Robert Kotick says the company needs an incentive like those offered by Canada, Singapore and Eastern Europe.

In Canada, gaming companies can get tax relief of between 30% and 40% on items such as wages. France has introduced a 20% tax relief scheme for games developers, resulting in French games publisher Ubisoft boosting its investment in the French games market.

Sony also says withdrawal of the promised tax relief could force it to launch new products elsewhere. According to Sony UK managing director Ray Maguire, countries such as Malta are planning to roll out their own tax incentives for games companies. Activision recently joined the UK trade body for game developers, called Tiga, which has been lobbying for tax breaks for more than five years.