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.
At least 25% of the core expenditure incurred by the company on the relevant game must be expenditure on goods or services that are provided from within the UK or European Economic Area (referred to in the legislation as 'European expenditure')1. Core expenditure refers to expenditure on designing, producing and testing the video game. Any expenditure incurred in designing the initial concept for the video game (eg. setting out the business case for making a game) and on further
Web page updated on 17 Mar 2025 15:43
