Tiga CEO Richard Wilson is of the belief that studios with canceled game projects should receive tax relief, due to publishers leaving the firms “high and dry.”
The trade body is suggesting the UK government treat canceled game projects the same as film projects, where tax relief is granted – providing the cultural test is passed and the game was intended for release.
Tiga found that 22% of UK developers had titles canceled by publishers before the game was completed, a situation which could result in “damaging repercussions.”
“Some publishers have been known to leave studios high and dry by obliging them to maintain teams of developers for months on end, only for them to finally cancel projects,” said Wilson. “This can have damaging repercussions for the studios in question. Just as some expenditure on unreleased films qualifies for film tax relief, so canceled game projects should in principle be eligible for games tax relief.
“This is consistent, fair and reasonable. Provided that the game in question would pass the cultural test and is demonstrably intended for release then it should in principle be eligible for games tax relief.”
UK games tax relief is expected to become available to studios in the country on April 1.