The UK government are always looking to increase the standing of the UK on the world stage. They have established various tax credits and reliefs to help encourage behaviour towards this goal.
The Video Games Tax Relief (VGTR) scheme is an incentive designed to promote British culture to the world and drum up more work for the UK gaming sector.
There are generous tax breaks available to Video Games Development Companies designing, creating and performing works that satisfy this objective.
To qualify for VGTR, a company has to develop a game that is certified as British by the British Film Institute (BFI), is intended for supply to the general public, and has incurred at least 25% of its total expenditure in the European Economic Area (until 01.10.2021 there after European Area).
The scheme works by giving additional corporation tax relief or a cash payment.
Sounds good right?
The relief
- The current rate of extra relief on qualifying expenditure is 80% of the amount of total core expenditure (or if lower the actual incurred in the EEA core expenditure incurred).
- If you are loss making then 25% of the qualifying loss can be paid out in cash.
If you would like to learn more about Video Gaming Tax Relief (VGTR) then get in touch with a member of the WardWilliam’s Creative team. We are also putting together a handy guide with all you need to know about VGTR. If you would like to be the first to receive this, then sign up to our email newsletter.
If you would like to know more about our services for Video Gaming companies. Then visit our website.
