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Scotland proposing tax breaks to keep game developers

Friday, 9th October 2009 21:08 GMT By Stephany Nunneley

murphy

Secretary of State for Scotland Jim Murphy has proposed tax breaks for the Scottish videogame industry.

These proposals have come to light after Murphy spoke with Realtime Worlds owner Dave Jones who has threatened to take his company to Ireland should there be further lack of support for developers.

“We have had a discussion about tax breaks and ways to support the industry,” said Murphy to The Evening Telegraph. “France have introduced tax breaks and we want to talk more about that and we will listen to any strong case being made; we want to do whatever we can to help.

“Dundee is the Scottish centre of excellence in this industry. I want to be very clear about that. The games industry has a big future and Dundee has a big future to play in that, in Scotland, in the UK and wider.”

Via Develop.

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7 Comments

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  1. OrbitMonkey

    Tax breaks funded by the English taxpayers no doubt ;-)

    #1 5 years ago
  2. reask

    Well you know the answer to that one orbit.

    Independence. ;)

    #2 5 years ago
  3. freedoms_stain

    You realise that tax paid in Scotland goes straight to Westminster right? So by granting a tax break Scotland are in fact keeping money and jobs in the UK, right?

    Nah, didn’t think you’d thought that far about it.

    #3 5 years ago
  4. OrbitMonkey

    Sorry freedom, just a bit of baiting for our northern cousins ;-) Hope some of those numpty’s in parliment take enough time from fiddling their expense’s to approve it. The UK has the talent as Batman Arkham Asylum undoubtedly proved.

    #4 5 years ago
  5. Cort

    You realise that tax paid in Scotland goes straight to Westminster right?

    And they get a lot more back. It’s called the Barnett Formula and it guarantees Scotland more taxpayer money per head of population than any other part of the UK.

    #5 5 years ago
  6. freedoms_stain

    That’s not how the Barnett formula works, and NI actually receives most money per head. There are also no official figures that demonstrate how much each region contributes, so how much Scotland “gets back” is in question.

    #6 5 years ago
  7. Cort

    Sorry, I meantto say mainland UK. Northern Ireland is a special case for reasons no fair-minded person would argue with (remember that the formula was written at the height of the Troubles).

    It’s established fact that Scotland is, in effect, guaranteed to receive more from the UK Exchequer than it raises in taxes – not by a rule which states “what you raise plus x” but by apportioning a percentage which is never going to be exceeded by population growth and/or local tax revenues relative to the rest of the UK. The advantage does diminish over time, however (this is the only complaint about Barnett that I have ever heard from the SNP: that the advantage over the English on tax funds raised UK-wide is being eroded. That, ladies and gentleman, is what’s called “irony”…..). Barnett – introduced as a short-term, temporary measure in, er, the late 70s – is not written into law, but no UK government of any hue has got the guts to drop it: the Conservatives struggle to survive north of the border and don’t wish to commit suicide, and Labour know that without all those Scottish MPs they’d struggle to win a vote in the UK parliament (West Lothian Question, anyone?) or, based on historical data, struggle to actually win another UK general election. And anyway we’ve had Scottish Chancellor’s since 1997, and let’s be honest here, no Labour Cabinet of the last twelve years has been lacking a large and strong Scottish base

    It is absurd (and fallacious) to say that it is not known what is raised where. HMRC know exactly what income taxes, VATs and National Insurances are raised from individuals and businesses, and they know in which regions those individuals reside and businesses are registered. Do you really believe that more personal and business taxes are raised per head in Scotland than in England? HM Treasury and the NAO also put huge efforts into calculating these data for their CSR calculations, and they know who gets what and spends what.

    #7 5 years ago