UK trade bodies Ukie and TIGA have both called on the government to improve the tax relief available to the games industry, after the measure went unaddressed in this week’s Autumn Budget.

The industry received only a brief mention in Wednesday’s announcement. Chris Buckden, tax advisor for media and creative sector at Moore Kingston Smith, tells GamesIndustry.biz, these are all minor changes.

“Video games tax relief specific changes are limited to administrative changes regarding companies transitioning from Video Game Tax Relief (VGTR) – the ‘old’ regime – to Video Games Expenditure Credits (VGEC), potentially applying where there is significant non-UK expenditure, and a clarification regarding payments for the transfer of relief between group companies,” he said.

Outside of video game-specific tweaks, there are some overall changes that companies need to pay attention to. Increases have been made to dividend tax rates, which will impact company owners and directors who pay themselves via dividends rather than drawing a significant salary. The limits for Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) investor relief schemes – which Buckden says might boost the investment potential from people in the UK – and the limits that apply to Enterprise Management Incentives (EMI) option schemes. Such schemes allow companies to grant share options to employees.

On that last point, Buckden explains that this will allow “larger companies to attract and retain talent in this way, rather than solely through salary and bonuses,” though for studios with less than 250 staff, this is a “moot point” as they would already qualify.

For those lucky enough to own a company, specifically for those looking to exit, selling this to an Employee Ownership Trust is slightly less attractive now as only 50% of giants will be eligible for Capital Gains Tax relief; before this was 100%.

Finally, there have been changes made to how salary sacrifice pension contributions work; Buckden says these are “slightly less tax efficient” as National Insurance contributions are capped at £2,000. We’re still four years from this taking effect, however.

Both Ukie and TIGA say that making improvements to VGEC will be a net positive for the economy, especially pressing issue as Reeves and the Labour government focus on growth.

“Today’s Budget proposed measures to address immediate fiscal pressures as the government looks to secure long-term economic growth. Going forward, we remain confident that targeted measures for the UK’s games and interactive entertainment industry can drive significant economic and cultural value for the UK,” UKIE CEO Nick Poole wrote on the trade body’s website.

“Introducing significant improvements to the UK’s system of tax reliefs, in particular VGEC would give studios the support they need to scale, create high-quality jobs and compete globally.

“We will continue to work constructively with Ministers and officials to make the case for this relief, alongside other policy measures in support of the UK’s pioneering video games and interactive entertainment industry. We have the talent, ideas and potential to drive economic growth and, with the right policy environment, can help deliver the investment and innovation the country needs.”

These comments were echoed by TIGA CEO Dr Richard Wilon, who cited previously published research that the trade body had conducted, which shows that improving VGEC could create over 6,000 new jobs.

“Today’s Budget saw the Chancellor focus on rebuilding her fiscal headroom to meet her key fiscal rules. The Government needs to drive economic growth across the UK,” he wrote.

“The video games industry can support this objective. Our industry generates £12 billion in Gross Value Added (GVA) annually, supports more than 73,000 jobs (including approximately 28,000 developers), and contributes £2.2 billion in tax revenues.

“The best way to accelerate growth in the UK video games industry is to enhance our VGEC. VGEC reduces the cost of games development, which in turn encourages investment and the creation of high skilled jobs in the sector. TIGA research with the University of Portsmouth shows that a VGEC with a rate of 53 per cent on qualifying costs for games with budgets of up to £15 million could create over 6,000 jobs, including over 800 development roles, whilst generating tax revenues for HM Treasury. Strengthening VGEC will promote economic growth and ensure the UK remains a leader in games development. TIGA will continue to make the case for an enhanced VGEC.”

Ukie and TIGA both recently signed an open letter to the UK government calling for its support for a new Games Growth Relief plan that they say could help create “thousands of high-quality jobs.”