If your company is working on a video game – good news – you may be entitled to pay less Corporation Tax via the Video Games Tax Relief (VGTR).
Who qualifies for Video Games Tax Relief?
Your company will be entitled to claim VGTR if:
- the game is British
- the game is intended for supply
- at least 25% of core expenditure (i.e. pre-development, principal photography and post-development) is incurred on goods or services that are provided from within the European Economic Area (EU countries and also Iceland, Liechtenstein, and Norway.)
Unfortunately, if your company has claimed Research and Development Relief on a project, no VGTR, grants, or any other state aid reliefs can be claimed on that project.
This information is for guidance purposes only. Due to the complex nature of Video Games Tax Relief criteria, it is highly recommended that you speak to your accountant before assuming your project qualifies.