Video Games Tax Relief (VGTR) Loans

It is a creative industry tax relief incentive that is funded by the UK Government. It is also known as the UK Games Tax Relief Scheme.

VGTR was created to help and support British video game development companies (VGDCs) who are working on the designs, development and testing of video games.

Up to 25% of the core production costs. If the game makes money (i.e. is profitable) then your VGTR is capped at 20%. It can also be used to help reduce your corporation tax.

If the game is loss-making, that’s when HMRC is more likely to give you a payable credit tax claim capped at 25%.

UK game developers can claim VGTR on either the actual EEA core expenditure or 80% of the total core expenditure (whichever is the lowest).

You can qualify if:

-The game is certified as British by the British Film Institute (BFI)

-The video game is produced for supply to the general public

-Your company is responsible for almost all of the planning, designing, testing, and developing (i.e. the ‘core expenditures’ of the game). However, please not that some things do not count as core expenditure. For example, original concept art or post-release debugging

-You have spent at least 25% of your core expenditure on goods and services provided within the European Economic Area (EEA)

-Your company is in control of all negotiations surrounding contracts, goods and services during the production of the video game

-The process is administered by the BFI (who are responsible for certifying a game as British), and HMRC who will review your claim when you submit your corporation tax return after your financial year-end

-The intention is to release the game commercially. It should NOT be created for advertising/promotion or gambling

There is some helpful guidance on both the BFI website and HMRC website which we highly recommend reviewing prior to making any claim.

At the end of your company’s financial year along with your CT600 (Corporation Tax Return).

But this doesn’t have to be the case. With our VGTR loans, you can apply at any time without being constrained by Government deadlines.

The following devices are eligible: video game consoles, PCs, televisions, tablets, smartphones and other handheld devices.

You can claim VGTR as a part of your Company Tax Return (CT600) when you file it with HMRC.

Yes. To be certified by the BFI certified it will need to have made a significant cultural contribution to the UK. At least, that’s according to the Department for Digital Culture, Media and Sport.

The cultural test is points-based. You get bonus points for using UK facilities to create parts of the game. For example, storyboarding. Or if the game has significant British-based cultural content. For example, it is set in the UK. Or it has British lead characters.

The BFI will monitor your decision-making and issue interim certificates as you progress, along with a final certificate if you meet all the relevant criteria.