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.
The VGEC tax regime includes rules which modify the normal loss relief rules for development companies. Losses incurred by a development company in any
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Web page updated on 17 Mar 2025 17:07