VGTR Introduced 1st April 2014

Video Games Tax Relief

Video Games Tax Relief provides tax benefits to video game production companies through Corporation Tax relief. The scheme enhances qualifying expenditure, creating additional deductions against profits or allowable losses that can be surrendered for payable tax credits.

Established under Finance Act 2013

Eligible Entities

✓ Companies incorporated in the UK
✓ Companies with a UK permanent establishment subject to Corporation Tax
✓ Companies responsible for designing, producing, and testing the video game
✓ Companies actively engaged in production planning and decision-making

Ineligible Entities

✗ Sole traders taxed under Income Tax rules
✗ Partnerships taxed under Income Tax rules

Qualifying Criteria

1. Game must be intended for supply to the general public
2. Must be certified as a British video game by the BFI
3. Minimum 25% of total core expenditure must be EEA expenditure

Cultural Test Requirements

The BFI Cultural Test is points-based, assessing whether a video game qualifies as British.

16/31

Minimum points required

Assessment Categories

* Cultural content (16 points)
* Cultural contribution (4 points)
* Cultural hubs (3 points)
* Personnel (8 points)

Core Expenditure

Eligible for tax relief enhancement

✓ Designing the game
✓ Producing the game
✓ Testing the game

Non-Core Expenditure

Not eligible for enhancement

✗ Original concept design
✗ Debugging
✗ Post-release maintenance
✗ Financing
✗ Marketing

Speak With a Specialist

VGTR, grants, maybe both - let's figure out what makes sense for you. It's free to find out.

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