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UK Tax Relief for Video Games

Started by December 11, 2012 10:57 PM
32 comments, last by _the_phantom_ 11 years, 11 months ago
http://www.develop-online.net/news/42752/Revealed-The-video-games-cultural-test

Is anyone else as bothered by this as myself?

I will start by saying I have no problem with the UK in general nor its people. Snatch was a great movie and even more watchable due to the cute accents. I myself once even dreamed of living in England in order to work at Rareware. But now that would be impossible. I would never have a chance at rising to the top because of this new legislation which heavily promotes workplace bias.

Does anyone disagree with that?

Furthermore, am I the only one who thinks the rest is nothing but payola? “Up to 4 points may be awarded in respect of the contribution of the video game to the promotion […] of British culture.”
How is this not payola?

How would you feel if you had designed this masterpiece of a game only to have the government stick its nose into your business and put you into a position in which you have to decide between sacrificing the heart and soul you put into your product or having to pay more taxes? Of course developer can always just pay the full tax as usual, but for the government to test their scruples and tease them with tax cuts is just an asshole move.




How about your view as a consumer?
This definitely promotes sell-out behavior, and you may soon find games with out-of-place British elements added just for the tax cuts even though they detract from the experience.
Do you as a consumer appreciate this? Will you buy games from developers who seem to have sold out for the tax cuts?
I have no problem buying and playing British games—Conker’s Bad Fur Day and Perfect Dark are 2 of my favorite games of all time—but not if they were made that way just for the sake of a tax relief.


This legislation sheds a very dim light on the British government. How do you feel about it?


L. Spiro

I restore Nintendo 64 video-game OST’s into HD! https://www.youtube.com/channel/UCCtX_wedtZ5BoyQBXEhnVZw/playlists?view=1&sort=lad&flow=grid


This legislation sheds a very dim light on the British government. How do you feel about it?


In fact it doesn't; the rules with regards to 'state aid' are apparently an EU wide thing so it is either this setup or not tax relief at all.

While this has caused a bit of facepalm-ing and an amusing twitter hash tag the truth is seems to be pretty easy to get the 16 out of 32 points required to qualify without compromising a game.

For example you can get 3 points by setting your game either in the EEA or some undefined location for 75% of the time. 4 points if the story is British or covers another EEA state (so anything taking part in or effecting the EU). Dialogue is likely to score you 4 points in most games. Do 50% of the work in the UK; another 2 points. 1 point for doing music, voice or audio recording/production in the UK.

That's 14 right there which are unlikely to affect a games development; throw in some points from the people developing the game and your 16 points is in the bag.

None of those are going to harm the game but will promote work being done in the UK (economy++) rather than outside of it.

And something like this is required to try and improve the industry here and prevent the "brain drain" to Canada which has plague the industry here of late too.
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you may soon find games with out-of-place British elements added just for the tax cuts even though they detract from the experience

International (particularly American) audiences seem to react quite well to 'British elements' in all sorts of media.

Did you ever notice how the first 5 Call of Duty games were about the Yanks fucking up, and the right honourable British troops pulling their arses out of the fire?

***

But joking aside, do you really expect to get something for nothing? Game developers want tax cuts (a.k.a. free money), have storytelling capability. Government wants good PR (a.k.a. storytelling), has lots of money. Match made in heaven.

And if your artistic integrity is so very precious to you, well, I've got news for you: the British government isn't the only entity out to get you. There's this little thing called a 'publisher'...

Tristam MacDonald. Ex-BigTech Software Engineer. Future farmer. [https://trist.am]


None of those are going to harm the game but will promote work being done in the UK (economy++) rather than outside of it.

And something like this is required to try and improve the industry here and prevent the "brain drain" to Canada which has plague the industry here of late too.

You could achieve the same thing by just requiring that it be developed in the UK. Why the extra clauses about the content of the game and the nationalities of the developers?

If I worked at Rareware I would be paying taxes to and contributing toward the growth of the British government. Why do they then need to add points for people in management being from the UK (people assume that is what is meant by “qualifying person”)?


Basically, if the problem is outsourcing, then don’t give the tax cuts to any work that is outsourced.
Whatever the problem are there are ways to avoid them without having to add all the regulations on game content or development personnel. The fact that these exist at all is a clear sign that the government has an agenda not strictly related to the promotion of the industry.



But joking aside, do you really expect to get something for nothing?

#1: Malaysia gave (maybe still gives) full tax exemption to video-game companies. Why does the British government need to use bribery?
#2: What it gets in return is a healthy video-game industry, more jobs, more overall revenue. Why is that not enough? They need to feed their egos too (talking about the government here, to avoid any confusion/offense)?



And if your artistic integrity is so very precious to you, well, I've got news for you: the British government isn't the only entity out to get you. There's this little thing called a 'publisher'...

I was talking from the point of view of the publisher or possibly as an indie.


L. Spiro

I restore Nintendo 64 video-game OST’s into HD! https://www.youtube.com/channel/UCCtX_wedtZ5BoyQBXEhnVZw/playlists?view=1&sort=lad&flow=grid


The fact that these exist at all is a clear sign that the government has an agenda not strictly related to the promotion of the industry.


I'm sorry, did you miss the part where I pointed out that this set of requirements was an EU thing and not a UK government thing?

The choice is tax breaks with these rules or no tax breaks - the UK government finally wants to help the industry here so they have to do it within the rules.

I'm sorry, did you miss the part where I pointed out that this set of requirements was an EU thing and not a UK government thing?

Yes



The choice is tax breaks with these rules or no tax breaks - the UK government finally wants to help the industry here so they have to do it within the rules.

When Malaysia wanted to help, it gave unconditional tax breaks.


L. Spiro

I restore Nintendo 64 video-game OST’s into HD! https://www.youtube.com/channel/UCCtX_wedtZ5BoyQBXEhnVZw/playlists?view=1&sort=lad&flow=grid

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When Malaysia wanted to help, it gave unconditional tax breaks.


Good for them?
Did you mean that those rules are imposed upon the UK by the EU? My first read of your previous reply left me thinking you meant, “If the developers want the tax cuts they have to play within the rules imposed by the government.”

If the UK is forced to do it this way because of the EU, frankly I don’t get it but that certainly shifts the blame and the dim light.
Why does the EU make it this way?


L. Spiro

I restore Nintendo 64 video-game OST’s into HD! https://www.youtube.com/channel/UCCtX_wedtZ5BoyQBXEhnVZw/playlists?view=1&sort=lad&flow=grid

Full taxes it is then :P

"I AM ZE EMPRAH OPENGL 3.3 THE CORE, I DEMAND FROM THEE ZE SHADERZ AND MATRIXEZ"

My journals: dustArtemis ECS framework and Making a Terrain Generator


Why does the EU make it this way?


Because the EU loves bureaucracy?

A possible explanation (off the top of my head) would be to blame France tongue.png. They are notoriously wary of the Americanisation of their culture and this might be seen as a way to promote telling local stories.

Or that could be utterly untrue... who knows?
if you think programming is like sex, you probably haven't done much of either.-------------- - capn_midnight

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