VGTR – A Brief Overview of the BFI’s Cultural Test

This article was originally published in 2019. This information is still correct for the VGTR scheme.  However, it is worth noting that 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^st April 2024 and closes from 1^st April 2027.  Games that have previously claimed VGTR, may be eligible for VGEC.

For more information about the Video Games Expenditure Credit, check out our blog on the topic here.

Qualifying for Video Games Tax Relief is relatively simple: you need to be making a video game, and it needs to be British. But proving your game is ‘British’ requires a little more hoop jumping than including tea and scones in the game.

To make a claim, you must have a certificate from the British Film Institute, or the BFI. A letter of comfort, or a signed document stating that the game will meet the standards when finished, will not be enough. The certificate can be “interim” (for productions not yet completed) or “final” (for completed productions). An interim certificate is valid for three years and there is no limit on the number of interim certificates you can receive.

The only exception to this rule is official co-productions, who qualify as "British" without the Cultural Test, but still must provide evidence of their status.

What is the Final Certificate?

You can only apply for a final certificate if your game is considered complete. This means it is in a form where it can reasonably be regarded as ready for copies to be made and released to the general public.

If the game is released on early access, you should consider whether planned updates and content will impact on how points are awarded on the cultural test, as this may require you to reapply for a Final Certificate.

What is the Interim Certificate?

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. You can reapply for an interim certificate if your game is still in development beyond this period. You will also need to apply for a final certificate once the game is complete.

VGTR is a cumulative scheme, meaning you can wait to claim the relief 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 typically better to wait and apply directly for a final certificate, to avoid duplicated effort and cost.

The online application has 19 pages, and you will also need to upload some attachments. We recommend that you create an account on the BFI site, so that you can save a partial application and complete the application at your own pace. It’s pretty unlikely that you’ll complete all the information in one sitting.

For ongoing projects, there are some further considerations you may wish to look into: VGEC Transition Rules: What Developers with Ongoing Projects Need to Know

What’s in the Cultural Test?

The cultural test operates on a points-based system where video games need to get 18 out of a possible 35 points to qualify.

You don’t need to apply for points under each of these categories, as long as you qualify for a minimum of 16 points. The certification team at BFI are very helpful and happy to advise what points you should be applying for.

Depending on the points you go for, you may need to prepare a statutory declaration or an accountant’s report. These can add extra time to your application, so we’d recommend going after other points if they are available to you.

The test is divided into four key sections:

Section A: Cultural Content

Up to 18 points are available in this section. It examines your game’s on-screen representation through four key areas:

Location: You can get up to 4 points for the game being set in the UK or the EEA, depending on the proportion of the production that is set there. For some games, points can even be awarded for undetermined locations (like space or fantasy settings).

Lead Characters: Up to 4 points are also available depending on the proportion of lead characters from the UK or EEA (or are undetermined, again like in fantasy settings).

Story: You can claim 4 points if the game depicts a story relating to Britain or to another EEA state or if the story is by a British/EEA citizen.

Dialogue: 6 points are available depending on the proportion of the game that is in English or in a recognised UK language (Gaelic, Scots, Welsh…).

Section B: Cultural Contribution

This section awards a maximum of 4 points based on British creativity, heritage and cultural diversity.

One or two points can be gained in each of these areas, depending on if the production excels in this area.

Section C: Cultural Hubs

Up to 3 for video games are up for grabs depending on the location of the development, programming, design, SFX, VFX and music recording.

Section D: Cultural Practitioners

Claimants can access up to 8 points awarded for UK/EEA nationality or residence of the key personnel in the production. The nationality or residence of the project leader, scriptwriters, producers, composers, artists, programmers, designers, other heads of department and the majority of the staff can get you a point on each count.

Expert Insights

It may seem like companies can make a game in the English language, with a team of European staff and complete a portion of their development in the UK and get their points. However, BFI’s “golden rule” prevents companies from qualifying without emphasis on creative content.

To pass, the game must also score at least two points in section A1 (setting) and/or at least two points in section A2 (characters), and/or 4 points in section A3 (story).

Another rule, the “Undetermined Points Rule”, applies to games with an undetermined location or characters with undetermined nationality. The game can claim points in Section A1 (location) and/or Section A2 (lead characters), but only if the game is awarded at least one point in any of Sections A3 (story), A4 (dialogue) or B (Cultural Contribution).

We always advise our clients to refrain from going beyond the ceiling when it comes to points. Trying to prove beyond 18 points creates unnecessary work that will not pay back any extra benefit.

Making your claim

If you’re looking for support for your claim, either through the Video Games Tax Relief scheme or through the Video Games Expenditure Credit scheme, get in touch with our experts. We’ve been making claims for over ten years and have a close working relationship with BFI; we can ensure your claim is made as efficiently as possible, while getting the most of the schemes for you.