Corporation Tax

Video games tax relief ― the separate video game trade

Produced by Tolley
  • 22 Dec 2021 16:13

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.

From 1 January 2021, under the ‘level playing field’ provisions of the EU-UK Trade and Cooperation Agreement (TCA), the UK has the ability to establish its own state aid or subsidy control system. On 30 June 2021, the Government published the Subsidy Control Bill which provides details of how the UK subsidy control system will operate. However, the application of EU state aid law (at least in respect of trading in goods) continues to apply in Northern Ireland, as set out in Article 10 and Annex 5 of the Northern Ireland Protocol.

The requirement to comply with EU state aid rules as part of the NI Protocol is likely to add complexity to establishing the subsidy control system in the UK. Under the Protocol, the UK is required to comply with EU state aid rules where any

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information


Popular Articles

Subsistence expenses

IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when

05 Jan 2022 14:31 | Produced by Tolley in association with Philip Rutherford Read more Read more

Purchase of own shares ― overview

Companies Act 2006 allows a company to repurchase its own issued share capital, provided certain conditions are met. This type of transaction is sometimes referred to as a ‘share buyback’ or a ‘purchase of own shares’.The repurchased shares can either be immediately cancelled, which is typically the

22 Nov 2021 10:02 | Produced by Tolley Read more Read more

Trustees’ powers and duties

This guidance note provides an outline of the main trustee powers and duties. Although there is a degree of overlap between them, the term ‘powers’ usually refers to discretionary or optional actions which the trustees may take for the purpose of maintaining the trust and supporting beneficiaries.

21 Oct 2021 10:31 | Produced by Tolley Read more Read more