Video Games: Research

Mr. Hunt
To ask the Chancellor of the Exchequer pursuant to the answer of 21 November 2007, Official Report, column 926W, on video games: research, for what reasons the information on HM Revenue and Customs research and development units for the computer games industry is not available; and what breakdown by industry sector and recipient can be provided of the allocation of £150 million by HMRC.

Angela Eagle
Information on claims for R&D tax credits for the computer games industry is not available because the data is broken down by industry sector using the UK Standard Industrial Classification of Economic Activities (SIC), and the computer games industry is not identified as a separate sector in this classification.

No industry breakdown is available of the figure of £150 million, which relates only to the payable credit element of the R&D tax credit scheme. However, a breakdown is available for the National Statistics published on the total claims made for R&D tax credits and total support claimed. This shows that companies in the computer and related services sector accounted for over a fifth of the total 6,300 claims made for R&D tax credits in 2004-05, and a tenth of the £580 million of support in these 6,300 claims. Whilst many companies involved in the computer games industry may appear in this industry sector, some may have other classifications.