Video games tax relief ― key provisions

Produced by Tolley in association with

Corporation Tax

Guidance

Overview of VGTR

Video games tax relief (VGTR) is available for accounting periods commencing prior to 1 January 2024 on which date the revised relief for video games known as the video games expenditure credit (VGEC) became available, see the Video game expenditure credit (VGEC) ― key provisions guidance note. The video game tax relief detailed below is still available for new productions up to 31 March 2025 and continuing productions up to 31 March 2027 but from 1 April 2027 these tax reliefs will cease. VGEC also changes the requirement on European expenditure below to a UK expenditure requirement with a lower threshold of 10%.

Companies which carry out the development of video games may obtain an additional deduction for corporation tax purposes. The deduction is based on the company’s qualifying UK or EEA core expenditure (referred to as ‘European expenditure’ in the legislation), up to a maximum of 80% of these costs. If the deduction results in, or increases a loss, a payable tax credit is available, which is equal

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Will Sweeney

Senior R&D Manager, Menzies LLP , Corporate Tax

Will Sweeney is a Senior R&D Manager in the Innovation & R&D team at Menzies where he looks after many of their largest clients. He has extensive experience of helping entrepreneurial clients to optimise their tax position throughout the innovation lifecycle by advising on issues including R&D tax credits, RDEC, Creative Sector reliefs and the Patent Box.In addition to his tax knowledge, Will started his career as an engineer and has worked with numerous technology, manufacturing and property sector clients. He brings a wealth of industry experience to his clients, helping him to understand the specific technical details of work undertaken by clients.Will contributes to TolleyGuidance Corporate module.

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