Video Games Tax Relief

Video Games Tax Relief is an incentive that allows video game developers to claim tax relief or a cash payment against video game development costs. This initiative is specifically for Video Games developers who have incurred costs after 1 April 2014. It is part of a suite of 5 Creative Industry Tax Reliefs.

Qualifying requirements

As with R&D Tax Relief, your company must be liable to pay Corporation Tax. It must also be directly involved in the production & development of video games that are classed as ‘British’ under the Video Games Cultural Test. See more about the cultural test, which is administered by the British Film Industry (BFI), here.

The video game must be intended for supply to the general public and at least 25% of the core expenditure must be incurred on goods or services that are provided from within the EEA. The game must be certified as British or European.

For advice on whether or not your video game development qualifies for Video Games Tax Relief, speak to our Technology Tax Relief specialists.

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Video Games Tax Relief FAQs

 

What devices are eligible for Video Games Tax Relief?

Computer games developed for any platform may be eligible for Video Games Tax Relief, including video console games, games for PCs, and games for smartphones, tablets and other mobile devices.

Can two companies claim if the video game development is a joint venture?

If two or more companies are working on the same game, only one may claim for Video Games Tax Relief.

Are there any video games that don’t qualify?

Video games produced for advertising or promotional purposes, or any video games produced for the purpose of gambling, do not qualify for Video Games Tax Relief.

How do I claim for Video Games Tax Relief?

You can claim for Video Games Tax relief through your Company Tax Return. Each video game needs its own P&L and must be reported to HMRC as a separate trade. Before you can claim, the game must pass a cultural test. You must be a company to make the claim. Individuals, partnerships and Limited Liability Partnerships cannot make claims.

What does the cultural test involve?

The cultural test is a points-based test carried out by the British Film Industry to establish the British or European content of the game. The test includes criteria, such as subject matter, language and location. To qualify a game must gain at least 16 points out of 30. Video Games Tax Relief cannot be claimed until cultural certification by the BFI has been granted.

If you feel your company may be eligible for tax relief
we can help you assess your eligibility and
calculate your potential ‘relevant profit’.

For professional advice on these specialist forms of Technology Tax Relief

Contact us for expert advice and assistance