Video Games Tax Relief
What is this tax relief?
Over the last few years the government has tried to encourage culturally British productions, by introducing
creative industry tax reliefs, which incentivise investment in British productions that might otherwise have
taken place overseas.
Video Games Tax Relief (VGTR) is one of the more recent tax reliefs to be introduced, coming into effect on
1 April 2014. The aim of this generous new tax relief is to keep the UK at the forefront of the world’s video
games production industry for years to come.
Who does this tax relief apply to?
The tax relief applies to video games development companies that are engaged in the making of:
a culturally British video game,
that is developed with the intention to sell,
where the company incurs at least 25% of the core development expenditure on goods or services provided from within the European Economic Area.
What are the benefits?
Companies that are eligible for this tax relief can claim up to 80% of the total core expenditure as an additional deduction in computing their taxable profits, thereby reducing their corporation tax bill.
If the additional deduction creates or increases a tax loss, the company can surrender losses in return for a payable Video Games Tax Credit.
Testimonial:
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Plus Accounting has specialist expertise in the Technology, Media and Innovation sector.
Our services for businesses include;
Year End accounts, tax returns and company secretarial
Creative Industry tax relief claims including Video Games and Animation
Research & Development tax relief claims
Management accounts
Tax and employee share schemes
Payroll services including pensions auto enrolment and P11D returns
Regular review meetings to discuss your management information, update the business plan and review tax strategies
Unlimited telephone and email support on routine matters
Fixed fees, payable by standing order over 12 months
Plus Accounting
The Technology, Media and Innovation team at Plus Accounting specialises in tax relief claims for the
creative industries.
If you would like more information or to see whether you are eligible for a video games or animation
relief claim, contact Luke Thomas on 01273 701200 or by email at [email protected]
Disclaimer: This leaflet is intended for guidance purposes only and we recommend that you take specific advice before taking
any action or relying on these notes. Plus Accounting is a trading name of Feist Hedgethorne Limited. Registered to carry out
Audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in
England & Wales.