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D7.1258 Video games tax relief—overview

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.

Video games tax relief takes two forms¹:

1. Ìý

   •ÌýÌýÌýÌý an additional allowable deduction of 100% of qualifying core expenditure, or

2. Ìý

   •ÌýÌýÌýÌý a payable tax credit equal to 25% of losses surrendered

A video game qualifies for relief if it²:

1. Ìý

   •ÌýÌýÌýÌý meets the condition in respect of European expenditure

2. Ìý

   •ÌýÌýÌýÌý is intended for supply and

3. Ìý

   •ÌýÌýÌýÌý is certified as a British video game

See D7.1259 for more on