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Video Games Tax Credits

VGTC is part of the UK cultural tax credit scheme - and highly revelent to our tech clients locally in Silicon Spa

When can you claim Video Games Tax Relief?

You can make a claim if the video game you are creating is certified as British by the British Film Institute (BFI), intended for supply to the general public.

At least 25% of core expenditure on designing, producing and testing the game is on goods or services provided from within the European Economic Area.

In addition, your company must also be actively engaged in planning and decision-making and directly negotiate, contract and pay for rights, goods and services.

Ensuring UK businesses remain competitive

VGTC effectively allows qualifying UK businesses to position themselves where they maybe break even on the game development work, but through the VGTC scheme, the UK Government underwrite a profit margin

What is VGTC worth?

In simple terms VGTC is paid at the rate of 25% of 80% of qualifying expenditure. So if you have £1m of qualifying expenditure – including payroll costs, your VGTC claim could be £200k.

 

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