Video games tax relief ― the separate video game trade

Produced by Tolley

The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Video games tax relief ― the separate video game trade
  • Introduction
  • The separate video game trade
  • Calculating the profits and losses of the separate trade
  • Income
  • Expenses
  • Obtaining the relevant information

Video games tax relief ― the separate video game trade


This guidance note supplements the Video games tax relief ― key provisions guidance note which sets out the main conditions to be satisfied in order to qualify for relief. The legislation relating to video games tax relief (VGTR) was introduced in Finance Act 2013 and is contained in CTA 2009, ss 1217A–1217EC (Pt 15B). Following an in-depth investigation by the European Commission to determine whether the development of video games in the UK requires support in the form of tax incentives, it concluded that the relief was compatible with EU State Aid rules in March 2014. The relief came into effect from 1 April 2014.

Post 1 January 2021, with the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU, state aid rules have been replaced by a subsidy control system in the EU-UK Trade and Cooperation Agreement (TCA) which prohibits certain specified subsidies if the subsidies concerned have or could have a material effect on trade or investment between the EU and the UK. However there is currently no detail on the operation of the subsidy control system or how it will interact with the Northern Ireland Protocol which maintains some aspects of the EU state aid rules.

The separate video game trade

There are several co

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