Get in touch
Please contact us to discuss how working with Myriad can maximise and secure R&D funding opportunities for your business.
Contact usVideo Games Tax Relief (VGTR) allows you to get back up to 20% for your game’s core expenditure, and you don’t have to wait for the game’s development to be 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.
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.
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.
The new Additional Information Form (AIF) is required for Creative Tax Relief claims from April 2024. Ensure compliance and secure your tax credits with this guide.
Rules for R&D tax relief for subcontracted projects is evolving in the UK. Learn about SME, RDEC, and the new Merged Scheme effective April 2024.
Learn about the UK’s new Audio-Visual Expenditure Credit (AVEC) for film & TV, simplifying tax reliefs for creative sectors. Discover who qualifies, what productions are eligible, and how to claim this simplified credit, available for productions from 2024.
Please contact us to discuss how working with Myriad can maximise and secure R&D funding opportunities for your business.
Contact us