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The separate video games development trade

The following rules apply to accounting periods ending before 1 January 2024. From 1 January 2024 tax relief for video games is given through the video games expenditure credit (VGEC), see D7.1203. 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 activities of a video games development company in relation to a 'qualifying video game' are treated as a separate trade of that company for tax purposes. The activities are separate from any other activities of the company, including any activities relating to another qualifying video game¹. Profits and losses are therefore calculated separately for each video game that the company produces.

The video game trade begins on the earlier of the