How to claim VGTR before your game is complete

This article was originally published in 2019. In 2023, the government announced its plan to transition to a new Video Game Expenditure Credit (VGEC) to replace the existing VGTR scheme. VGTR remains available for games in development prior to 1 April 2024 and closes on 1 April 2027. Games that have previously claimed VGTR may be eligible for VGEC. If you have any questions, please email us.

If your game is still in development but you want to benefit from VGTR, you can apply for an interim certificate. Interim Certificates are valid for 3 years. If your game is still in development beyond this period, you can reapply for an interim certificate. You will also need to apply for a final certificate once the game is complete.

How to claim Video Games Tax Relief?

An essential requirement for claiming VGTR is ensuring that your game is certified as a British video game by the Department for Culture, Media & Sport (DCMS), as administered by the British Film Institute (BFI). To become certified, you will need to complete and pass the cultural test. The test has 4 sections, and your application must score at least 16 out of 31 available points to qualify as a British video game and, therefore, be eligible to claim VGTR. 

VGTR is a cumulative scheme, meaning you can wait to claim the relief from HMRC until the accounting year in which your game has been released to the public. If your game is due to be completed within a few months, then it is usually better to wait and apply directly for a final certificate to avoid duplicated effort and cost. 

The applications for the BFI cultural test for video games can be made online via the BFI portal. 

Once you have received the certificate, you can make a VGTR claim as part of the company’s tax return. Each qualifying Game must be treated as a separate trade when reporting to HMRC. This is a complicated area, and we recommend that you contact a VGTR tax specialist; however, further information can be found in the VGTR HMRC Manual. 

Do you qualify for VGTR?

To apply for VGTR, your company needs to be responsible for the majority of the game’s planning, designing, developing, testing, and production decisions; registered for UK corporation tax; and responsible for the game. At least 25% of the eligible cost must have been incurred within the European Economic Area. 

Our e-book How to Apply for Video Games Tax Relief provides more detail on the criteria needed. 

Myriad cuts out the stress and the claim process by completing BFI applications, preparing the HMRC tax computations, and, more importantly, ensuring that your claim is maximised.