Overview of VGTR

Video games tax relief (VGTR) is available for accounting periods commencing prior to 1 January 2024 on which date the revised relief for video games known as the video games expenditure credit (VGEC) became available, see the Video game expenditure credit (VGEC) ― key provisions guidance note. The video game tax relief detailed below is still available for new productions up to 31 March 2025 and continuing productions up to 31 March 2027 but from 1 April 2027 these tax reliefs will cease. VGEC also changes the requirement on European expenditure below to a UK expenditure requirement with a lower threshold of 10%.

Companies which carry out the development of video games may obtain an additional deduction for corporation tax purposes. The deduction is based on the company’s qualifying UK or EEA core expenditure (referred to as ‘European expenditure’ in the legislation), up to a maximum of 80% of these costs. If the deduction results in, or increases a loss, a payable tax credit is available, which is equal to 25%