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From 1 January 2024 tax relief for video games is given through the video games expenditure credit (VGEC). Prior to 1 January 2024 relief was provided through an additional corporation tax deduction or a tax credit (see D7.1250 onwards). The transition to the revised tax relief rules post 1 January 2024 is voluntary but will be obligatory for new productions from 1 April 2025 and for all productions from 1 April 2027, at which point the previous tax reliefs will cease. Where a company elects into the VGEC and the accounting period straddles 1 January 2024, expenditure is apportioned.

Qualifying video game development companies as described in D7.1203 can claim VGEC on qualifying video games as detailed in D7.1203A. There are specific calculation rules which determine the qualifying expenditure on which VGEC can be claimed.

Each qualifying video game is treated as a separate trade from the other activities of the development company, this is known as 'the separate production trade'. The profit or loss for the separate trades are calculated separately