It was recently announced that the UK Government would be providing tax relief for video game developers starting April 1st of next year. The tax relief rate will be set at 25% of qualified expenditure, and there will be no minimum spend requirements, which is fantastic news for indie game developers.
A lot of game developers in the community were wondering what impact the tax relief would have on Advergames and In-Game Advertising, as these provide revenue streams that many would think won’t be covered.
Here’s the good news, In-Game Advertising will be allowed and is still encouraged with the new tax relief! This includes both Product Placement in Video Games and Dynamic In-Game Advertising. As a reminder, Dynamic In-Game Advertising is real-time advertisements in video games that take the form of billboards, and can be geo-targeted. Static In-Game Advertising is similar to product placement in films, so it can’t be displayed in real-time, but does allow for deeper integration into the story-line of the video games.
The only thing that won’t be covered by the new tax relief, is Advergaming. Advergames are video games that are developed for the sole purpose of promoting a company, brand, or product. The reasoning here is that Advergames are often commissioned and funded by companies from industries other than the video game industry…so their logic is that providing a tax relief for advergaming wouldn’t necessarily support the industry. I personally disagree somewhat, as Advergames still provide game developers, and game programmers, and countless others with jobs, which then still directly supports the gaming industry…but hey I’m not the one calling the shots! -_-
To learn more about the tax relief, or In-Game Advertising, contact us at: https://www.rapidfire.com/contact-us/
A lot of game developers in the community were wondering what impact the tax relief would have on Advergames and In-Game Advertising, as these provide revenue streams that many would think won’t be covered.
Here’s the good news, In-Game Advertising will be allowed and is still encouraged with the new tax relief! This includes both Product Placement in Video Games and Dynamic In-Game Advertising. As a reminder, Dynamic In-Game Advertising is real-time advertisements in video games that take the form of billboards, and can be geo-targeted. Static In-Game Advertising is similar to product placement in films, so it can’t be displayed in real-time, but does allow for deeper integration into the story-line of the video games.
The only thing that won’t be covered by the new tax relief, is Advergaming. Advergames are video games that are developed for the sole purpose of promoting a company, brand, or product. The reasoning here is that Advergames are often commissioned and funded by companies from industries other than the video game industry…so their logic is that providing a tax relief for advergaming wouldn’t necessarily support the industry. I personally disagree somewhat, as Advergames still provide game developers, and game programmers, and countless others with jobs, which then still directly supports the gaming industry…but hey I’m not the one calling the shots! -_-
To learn more about the tax relief, or In-Game Advertising, contact us at: https://www.rapidfire.com/contact-us/
