The UK has a large market for both mobile and traditional games. The mobile games market was worth £450 million in 2012 and is growing, while the console market remains strong. The UK has a talented game development community, with over 250 game studios and many freelancers. There are gaming clusters across the UK, not just in London, and overseas companies locate in the UK due to the large market, talent pool, and business connections. The UK government provides tax credits for research and development as well as a new 25% tax relief for game development expenditures to support the industry.

1. The UK.
Supporting your growth

2. Size of market
• Overall market size 2012 = £1.6Bn
• Mobile games – the 2012 UK App market is worth £450m and will surpass
the half billion mark next year (research2guidance, 2012) and over half is
spent on games**
• Traditional games – the UK console market remains strong despite the
falling sales figures that comes with the changing business distribution
models
• Great talent – The UK has the largest development community in Europe
with over 250 development studios and 100s more small development
teams and freelancers***
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**Research2Guidance, 2012
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3. A rich and diverse ecosystem
• There are many clusters of games companies across the
UK, in cities of London, Manchester, Sheffield, Newcastle,
Liverpool, Birmingham, Dundee, Guildford, Oxford,
Cambridge and Brighton
• There are over 250 professional game developers
with many more freelancers and smaller studios
producing mobile and social games
• There is not the concentration in London, due
to the way in which the traditional games
industry evolved
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4. The UK in this sector
• Overseas companies choose the UK to base their EHQ as it has the
market, talent and the business connections to ensure that their games are
given the best chance of succeeding across Europe
• R&D tax credits provides a boost to games companies developing core
software and content for all gaming platforms
• The UK government has provided the additional incentive of a tax credit for
games companies from 2013
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5. R&D Tax Credit
SME rate (fewer than 500 people worldwide/ €100M turnover)
225% Tax Relief of qualifying expenditure
Reduces cost of R&D by 30%
If loss making can be surrended to receive cash equivalent of 25% of
expenditure
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6. Games Tax Relief
Games Tax Relief designed in consultation with industry as a response
to significant global challenges to position of UK as continuing centre of
creative excellence
Announced in Budget 2013 simultaneous with incentives for production
of Animation & High End TV (modelled on successful Film Tax Relief)
Games Relief specifically subject to EU Ratification process. DCMS &
industry working with EU on further round of consultation
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7. Games Tax Relief
Headline = 25% Tax Relief on applicable expenditure
Qualification:
Applicant is UK registered company and recognised production entity
Core expenditure in UK >25% total budget
Production passes “cultural test” as defined and administered by BFI
Relief claimed retrospectively through company returns
No minimum budget threshold
Recognition of new business models
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8. Get in touch
Mark Leaver
UKTI Creative Media Specialist
+44 (0)7884 490937
mark.leaver@uktispecialist.com
@mark_leaver
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