Video Games Tax Relief update – boost for prospects of professionals working in this sector

Posted by:admin on Feb - 20 - 2015 - Filed under: Creative & Digital Freelancers,Creatives and Digitals -

As part of the UK long term economic plan the video games sector is being nurtured by ensuring that the right conditions are in place. Video games companies have been able to claim tax relief on the production costs of games certified as culturally British from August 2014.

Video games must achieve a level of points which they are awarded based on their cultural content, cultural contribution and the location of the game’s development and nationalities of key personnel working on the project.

Video games tax relief builds on the model of the film tax relief. Like the High-End TV and animation tax reliefs, development companies are eligible for a payable tax credit worth 25% of qualifying costs.

95% of UK video games developers are SMEs. It is estimated that this new corporation tax relief will provide around £35 million of support per year to the sector.

In the first six months of the tax relief, 32 games received final or interim certification, meaning that they qualify under the cultural test and can claim tax relief from HMRC. These games have made a total spend in the UK of £47 million between them.

Nine games have already received a final certification and been released, with a UK spend of £2.3 million between them, or £256k per game on average.

For the 23 games that currently have interim certification and are in production, the expected UK spend is £45 million, or approximately £2 million per game on average. An additional detail is provided for the games in interim certification: their total budget is expected to be £54 million, so 82% of their budget is being spent in the UK.

A ministerial answer in Parliament last December revealed that the pace of applications has recently increased, which is not reflective in these figures. Early indications are therefore that momentum is now gathering, and hopefully next year’s statistics will be even more successful. However, as set out in the manifesto, more work still needs to be undertaken to promote the UK’s game tax relief internationally as a great place to make and develop games.

This is not only good for the video games industry but also for all the freelance professionals working in this sector.

Be the first one to comment


Reasons To Choose Us


Over 20 years of trusted expert advice

  • Keep it simple - pay for the accountancy services you really need – including set-up, bookkeeping, filing accounts, tax returns and secretarial services.
  • Gain the best advice - we will manage the process for you and make sure you save as much tax as possible.

Making it easy and affordable

  • Save your money – don’t pay over the top for an accountant.
  • What other accountants may consider to be complex, we make routine by using cutting edge technology.
  • We are Central London-based accountants offering convenience without high prices.

Don’t pay too much tax

  • Before working with us, many of our clients had previously been paying more tax than they needed to.
  • If your accountant isn’t up to date on the latest legislation, you too may well be missing out on new tax saving opportunities - don’t take that risk.

Is your accountant interested in your business? We are!

  • We do a complete and proactive job, so you won’t be missing out on tax saving opportunities.
  • We speak your language and we don’t sit back; we monitor, we recommend and we’re never too busy to meet up.


Abbingdon Knight large rose logo