Video Games Tax Relief
This tax relief for game development was announced by the Government in 2012 but did not come into effect until 1 April 2014. The introduction of the incentive signalled encouragement to the UK’s gaming industry, which continues to go from strength to strength, despite strong competition. However, it’s believed that it’s still not claimed as widely as it could be. Our specialists tax advisors can help you work out whether you may be eligible and can help you submit your claim.
‘The relief can be claimed by any company that is responsible for the design, production and testing of a game and directly negotiates, contracts and pays for rights, goods and services in relation to that game.’
Video Games Tax Relief (VGTR) is available on qualifying UK/EEA production expenditure on the lower of either 80% of the total core expenditure or the actual UK/EEA core expenditure incurred.
There is no cap on the amount that can be claimed.
Accessing Video Games Tax Relief
- It must qualify as British under the Video Games Cultural Test.
- The video game must be intended for release.
- At least 25% of the core expenditure must take place in the UK/EEA.
- The video game development company (VGDC) responsible for the video game needs to be within the UK corporation tax net.
For more information please see our guide on VGTR
To talk about VGTR how you may be eligible to claim please contact Sejal Shah