The European Commission has approved the new UK tax relief for video game as being in line with EU state aid rules. The videos games tax relief is designed to give an incentive to developers of video game developers to design products that meet certain cultural standards. The relief was originally announced by the Chancellor as part of a number of measures to support creative industries in the UK.
The European Commission had conducted an in-depth investigation of the relief, suggesting that it might be unnecessary as the sector did not need this incentive. However the Commission has now decided that the number of video games being produced would go down without this relief, which promotes culture without causing an undue economic distortion in this market.
