Video Games Tax Relief

Both the additional enhanced deduction at 100% of qualifying core expenditure and the payable tax credit at 25% of the losses surrendered are calculated on the basis of UK core expenditure up to a maximum of 80% of total core expenditure by the qualifying company. Scroll down to find out more about VGTR.

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Qualifying Video Games

To qualify for relief there must be one video games development company registered with Companies House, and you must have a video game:

  • intended for supply to the general public
  • that it is certified as a British video game with regards to a cultural test
  • 25% of core expenditure must be UK expenditure

Control and the Video Game Development Company

The video game development company must be responsible for the game from design through to testing while in control of negotiating contracts.

Qualifying expenditure

Qualifying expenditure covers areas such as designing, production and the development.

Non qualifying are areas such as the initial concepts and for completed games debugging and maintenance costs.

UK Expenditure

Are the goods and services used or consumed in the UK?

Ineligible Expenditure – for example in film expenditure is disallowed for finance costs, audit fees, entertaining, hospitality, publicity and promotion etc.

Culturally British Test

The cultural test for British video games which is administered by the British Film Institute (BFI). The aim of the cultural test is to apply objective criteria to the measurement of cultural attributes in order to better identify culturally British video games. This test awards points for those elements that contribute to the overall cultural value of a video game. Points are awarded in following areas:

  • Cultural content
  • Cultural contribution
  • Cultural hubs
  • Cultural practitioners

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    Video Games Tax Relief
    Nick Watterson | Alliotts



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    Nick is experienced in advising clients in a wide variety of sectors, including technology, education and not for profit. He provides audit, financial reporting, and business advisory services to help support his clients grow and achieve their ambitions.

    With a background in audit, Nick has a keen eye in understanding how a client’s systems and processes operate and where potential issues may arise. He then works with them to devise solutions to their problems.