After being notably absent from the recent UK budget and having been blocked by the European Commission, today's announcement comes as some much needed good news for the UK games industry as it has been hit with many lay-offs and closures in recent times.
The European Commission's VP in charge of competition policy Joaquin Almunia: "Our initial doubts have been dispelled. The proposed aid for video games is indeed focusing on a small number of distinctive, culturally British games which have increasing difficulties to find private financing."
The tax breaks will be applicable for games that pass a "cultural test", scoring more than 16 points in the test where setting 75% or more of the game gives you 4 points (as an example). It's estimated that around 25% of the games developed in the UK will be applicable.
Ukie CEO Dr Jo Twist said: "This is a huge boost to the UK games and interactive entertainment sector and the start of a great new era of games production in the UK. We are delighted the European Commission recognised the clear market failure for the production of games with a British and European flavour, using UK-based creative and highly skilled talent."
"We are extremely happy to have played a part, as a strong collective voice for the industry, to get the scheme over the finishing line. We have been in constant contact with government throughout the process and have applied pressure and evidence for the scheme to be introduced at every opportunity."
Ukie will now tour the country to inform developers of these new rules. It's been a long journey to get these tax breaks as work on this began in 2008.