With the way things are changing within the industry and considering how unstable things are for development studios, game devs are looking for ways to stay competitive. The situation in the UK is being debated currently and we can only hope that the outcome is positive. Some companies are even considering moving out of the UK. A sad state of affairs.

From the article:

    TIGA, the trade association representing the UK games industry, today highlighted reports which demonstrate that the UK tax regime is uncompetitive and that development staff are being drawn away to Canada.

    A new report by HM Revenue & Customs acknowledges that one in four large businesses are considering leaving Britain to escape its growing tax burden. Cuts in corporation tax do not appear to have provided the UK with a competitive tax regime. In the case of the video games industry, investment is being diverted to jurisdictions with tax breaks for games production. Andrew Wilson, the senior vice president of worldwide development at EA Sports, admitted in an interview with Develop that “EA has many studios that takes advantage of game tax breaks and EA Canada is certainly one of them,” Andrew Wilson also acknowledged that EA employs“…lots of British developers at EA Canada.”

    Dr Richard Wilson, CEO of TIGA, said:

    “The UK needs a tax environment which encourages investment, business growth and inward investment. Unfortunately, HM Revenue and Customs’ own research demonstrates that 26 per cent of large businesses are considering leaving the UK because of the tax burden. In the case of the video games industry, businesses are already foregoing investment in the UK and investing instead in jurisdictions with tax breaks for games production.

    “The provision of tax breaks in Canada is also helping to fuel a brain drain of key development staff from the UK. The Entertainment Software Association of Canada acknowledged earlier this year that Canada has been successful in attracting investment and skilled personnel from the UK. These new comments by Andrew Wilson of EA Sports confirm this phenomenon.”

    Jason Kingsley, TIGA Chairman and CEO and Creative Director at Rebellion, said:

    “The Government rightly says that it wants to create the most competitive tax system in the G20. There is clearly much more that needs to be in order to achieve this objective. TIGA will continue to revise and strengthen its case for Games Tax Relief, enhanced R&D Tax Credits and a supportive tax environment generally in order to improve the UK’s tax regime.”