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Video Games Tax Relief

TBAT Innovation helps businesses to claim Video Games Tax Relief for the design, production and testing of new video games.

What is Video Games Tax Relief?

Video Games Tax Relief is part of the UK Government’s Creative Industries Tax Relief incentives.

UK game developers can receive a Corporation Tax reduction or rebate worth up to 20% of the core production costs of a game.

Game developers can claim VGTR on whichever is lower:

  • 80% of the total core expenditure
  • The actual European Economic Area (EEA) core expenditure incurred

If the game is profitable, the Tax Relief can be used to reduce a Corporation Tax bill. If the video game makes a loss, claimants can receive a cash payment from HMRC at a rate of 25%.

How to qualify for Video Games Tax Relief:

To qualify for VGTR, you need to meet the following criteria:

  1. Your company must be responsible for most of the planning, designing, developing, testing, and production of the video game and, therefore, be known as the Video Games Development Company (VGDC).
  2. The video game must be intended for commercial release, but not created for advertising, promotion, or gambling (within the meaning of the Gambling Act 2005) purposes.
  3. The video game should qualify as “British” under the British Film Institute (BFI) Video Games Cultural Test.
  4. At least 25% of your video game production costs must have been incurred within the European Economic Area (EEA).

Eligible Devices:

If you meet the above VGTR criteria, and your video game can be played on any one of the following devices, you could be entitled to Video Games Tax Relief:

  • PC’s
  • Televisions
  • Smartphones or other mobile devices
  • Tablets
  • Video consoles or other handheld portable devices

How can TBAT help?

Our experienced team of tax and accountancy experts can support you through every step of the process which starts with a quick and painless chat to understand whether you qualify and how much you could claim. Get in touch here.

Creative Industries Tax Relief

Video Games Tax Relief is just one of the many Creative Industries Tax Relief Incentives. Businesses can claim tax relief if they are directly involved in the production and development of:

  • Films & Animation
  • High-end Television
  • Children’s Television
  • Theatrical Productions
  • Orchestral Concerts
  • Museum or Gallery Exhibitions

Our team are happy to review and assist with any type of creative industries tax relief; we will discuss with you on a case-by-case basis to advise how we can help.

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