TIGA a non-profit organisation that represents the UK Games Industry has revealed its disappointed that the European Union has decided to probe the planned tax break for the Games Industry as it sees "no market failure" that need to be addressed. The planned deducation was due to be introduced April 1st but was delayed after the European Commision failed to approve the plan.
The UK government remains committed to the proposal as the tax break would see a 25% relief in tax allowing more budget on a games development such as designing, producing and testing the title in the UK. Games with primary focus on gambling, advertising, pornography or other "extreme materials" would also be excluded from the tax relief.
Chancellor George Osborne described the relief as being among the most generous in the world when he annouced the proposal in December. While Canada and France already offer such incentives for Game Developers, France's tax relief is limited to games whose development costs total at least 150,000 Euros (£129,128; $196,876).
The UK has decided not to improse such a threshold after consultation highlighted the value of offering the relief to the fast-growing smart device video games market.
Should this tax relief be introduced you could see an increase in game development jobs within the UK, with the possibility of companies moving from one country to another. For now though its down to the EU Commision to investigate.