Video Game Tax Relief

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Video Game Tax Relief

The Video Games Tax Relief is also known as the UK Games Tax Relief, and it is a governmental initiative supporting the development of video games in the country. Any company that produces qualifying video games is able to access the Video Games Tax Relief. Since the return is based on the Corporation Tax Return filed with HMRC, sole traders or partnerships do not qualify if they are taxed under the Income Tax rule.

Video Game Tax Relief Eligibility

 ‘Does My Company Qualify For Video Game Tax Relief?

Here are some of the main eligibility criteria for Video Game Tax Relief: 

  • To qualify for Video Games Relief, your company must be incorporated in the UK or have a permanent premise that falls under the ruling of HMRC and participate in all stages of the planning and decision-making processes
  • A company’s main care should be the designing and testing of video games, even if it should be involved in the direct negotiation and contracting of all goods and services associated to the qualifying video game project
  • Your company must be involved in all stages of the production, until the completed programme is finalized – and as such be known as a Video Games Development Company
  • Subcontracting is allowed and is even known as common practice across most creative industries, and while it falls under the accepted inclusions of core expenditure, it has a cap of £1 million per released game
  • Must pass the Cultural Test, during which 16 points are necessary to be considered a pass, out of the 31 total available points. Even if your game is not yet finished, the British Film Institute (BFI) can release interim certificates for this particular cultural test
  • A video game qualifies if it is intended for the general public, largely supplied for use
  • Your games should be available to be played on any of the following devices: personal computers, televisions, smartphones or other mobile devices, tablets, any video consoles, or handheld portable devices
  • 25% or more of its core expenditure must be spent on products and services originated from within the European Economic Area. This core expenditure can for example be any costs incurred during the designing, producing, and testing steps of the video game creation (including testing both the technical aspects of the video game and the entertainment value of gameplay and narrative)

Video Game Tax Relief Additional Information

The questions of BFI’s Culture test vary from staff-related questions to the game’s possible cultural contributions, and any applications for the BFI certificate needs to be supported by extra documentation, such as the scripts and synopsis of the game, production schedule and a report of the production costs (an accountant’s financials may be requested as proof of any submitted reports to the BFI). HMRC will also ask you to provide accounts of your EEA and non-EEA expenditure, split between the two, and a breakdown of expenditure by category.

The legislation does not allow for video games produced as advertising tools for other goods and services, nor any games created for gambling procedures.

A company can apply for Video Games Tax Relief while claiming Research and Development Tax Relief as well; however, you can claim money for specific areas only through one of the schemes, not both. Ideally, a company’s costs should be identified and separated according to each scheme’s requirements, to maximize one’s relief to the fullest. If you would like more information about R&D Tax Credits, get in touch with R&D Specialists Counting King who can advise you on the best steps to take if you’d like to claim from both schemes. 

Additional Funding Opportunities

There are many tax incentives, grants and funding initiatives available to UK businesses. Whether you’re a start-up or an established business, we can provide you with the crucial advice that will help you access additional cash to help your business grow. We are partnered with Counting King, an industry leading firm that specialise in tax incentives that can support you with accessing additional funding support. Get in touch to find out more about what cash is available to you today! 

Video Game Tax Relief Documentation Requirement ​

To file for your Video Game Tax Relief you will need the following documentation: 

BFI Certification

British cultural certification that has to be accredited by the British Film Institute (BFI).

BFI Certification

British cultural certification that has to be accredited by the British Film Institute (BFI).

UK Expenditure

Provide statements of your core expenditure which are clearly outlined as either UK or non-UK expenditure.

UK Expenditure

Provide statements of your core expenditure which are clearly outlined as either UK or non-UK expenditure.

Breakdown

Expenditure breakdown should be categorised.

Breakdown

Expenditure breakdown should be categorised.

For any help or advice please contact us:

Get in touch today to discuss your Video Game Tax Relief Claim

If you require any additional support with your BFI certification, we provide this service for FREE. 

For any additional information on: 

  • Eligibility criteria
  • How much you can claim 
  • How we can support you and your company throughout the process of the claim 
  • Our additional services to support your  business growth 


Just fill out the contact form with a short message about what your query is and one of our experts will get in touch with you. 

Take advantage of our FREE 1 hour consultation for any additional services that you’d like to take advantage of today. 

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