Game theory is reality: Almost £0.5bn of Video Games Tax Relief (“VGTR”) provided since launch in April 2014.


Andy Wood

Andy is a practical, creative tax adviser who assists a variety of clients in achieving their personal and commercial objectives in the most tax efficient manner.


Since the relief begin in April 2014, Video Games Tax Relief (“VGTR”) has been provided in respect of almost £0.5bn according to HMRC figures

What is it?

As stated above, VGTR was introduced in April 2014 as a result of sustained lobbying by the UK games industry.

The relief is allows companies producing video games to offset production costs in respect of games that are certified as ‘culturally British’.

This ‘cultural test’ means that the tax relief supports the production of culturally British games. A game must achieve a level of points based on its:

  • cultural content;
  • cultural contribution;
  • the location of the game’s development and nationalities of key personnel working on the project.

Formal certificates are issued by the British Film Institute (“BFI”) in respect of games that pass the test.

Video games tax relief is based on the same model as the film tax relief. Like the high-end TV and animation tax reliefs, development companies are eligible for a payable tax credit worth 25 per cent of qualifying costs.


If you or your clients would like to find out more about this relief then please do not hesitate to get in touch.


Game over.

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