Budget 2014: Gaming Industry Braces for Tax Break Green Light

Britain's video game industry is bracing itself for the government's green light over tax breaks in UK Chancellor George Osborne's Budget 2014 announcement.

According to Tiga, the gaming trade association, sources say that Whitehall could finally reveal the European Commission's decision on Games Tax Relief (GTR) as part of the 2014 Budget announcement.

Osborne first announced the GTR in the 2012 Autumn Statement and the tax break was due to come into force on 1 April 2013. It is aimed to offer developers up to 25% tax relief on 80% of their costs.

However, the GTR was pushed back after EU authorities issued concerns that that such tax breaks were "unnecessary" and that it could potentially distort the market.

Britain is the sixth-largest games maker in the world after ranking as high as third only six years ago, according to Nesta research.

Meanwhile, a study from Tiga suggests that Games Tax Relief would generate and safeguard 4,661 direct and indirect jobs and £188m in investment expenditure by studios.

The research also says that it is estimated to increase the games development sector's contribution to UK GDP by £283m, and generate £172m in new and protected tax receipts for HM Treasury.