Level up your finances: the ultimate guide to video games tax relief in 2024
The UK is home to a thriving video game market that grew by an average of 8% year-on-year between 2017 and 2022. The industry is forecast to grow faster than the economy, and the number of video game companies has grown by 31% since 2016 to approximately 2,500 businesses.
Acknowledging the contribution of the video game industry to the economy, the government unveiled Video Games Tax Relief (VGTR) in 2014. This offers industry-specific benefits and tax breaks to video game developers across the UK.
The VGTR is set to be replaced by the Video Games Expenditure Credit (VGEC), which will fully supersede the VGTR by 2027. In addition to these industry-specific schemes, companies may be able to benefit from R&D tax credits and capital allowances.
This guide will delve into how video game companies can benefit from VGTR, VGEC, R&D tax credits and capital allowances.