IfWatch you’re a companyvideo claimingabout taxhow reliefCreative youIndustry canTax claim Videoreliefs Games Expenditure Credit (VGEC) on expenditure incurred from 1 January 2024.work.

YourWhat companyare canCreative claimIndustry aTax VideoReliefs Gamesand Expenditurehow Creditdo onthey a video game if:work?

• it

  Who iscan certified as British by the British Film Institute

• it is intended for supply to the general public
• at least 10% of the ‘core costs’ relate to activities in the UK — what’s spent on designing, producing and testing the game

Your company must be:

• directly responsible for designing, producing, and testing the game
• actively engaged in planning and decision-making
• directly negotiate, contract and pay for rights, goods and services

YourCheck company cannot claim this relief if your gamecompany isqualifies producedas forthe advertising,production promotionalcompany purposesbefore orclaiming for the purposes of gambling.relief.

Before you claim

You’llThe needBritish toFilm haveInstitute Britishmanages certification beforeand youqualification canon claim.behalf Youof can read about passing the culturalDepartment test and applying for BritishCulture, certificationMedia onand the British Film Institute website.Sport.

The British Film Institute will issue:issue: 

• an interim certificate — for uncompleted workwork 

• a final certificate — whenwhere production has finishedfinished 

You’llYou needcan to:

1. Getfind more information about certification and applying on the British certification.Film Institute website.

2. Check if the video game qualifies for the expenditure credit

   FindIf outyou’re whata company claiming tax relief you can claim.claim Video Games Expenditure Credit (VGEC) on expenditure incurred from 1 January 2024.

3. CheckYour company can claim the qualifyingexpenditure conditions.credit on a video game if:

   • it is certified as British by the British Film Institute

   • Workit outis intended for supply to the coregeneral costs.

     public

   • Completeat least 10% of the additional‘core informationcosts’ formrelate to activities in the UK — fromwhat’s 1spent Aprilon 2024designing, allproducing claimsand musttesting includethe this.

     game

   ClaimYour oncompany cannot claim the expenditure credit if your Companygame Taxis Return.produced for advertising, promotional purposes or for the purposes of gambling.

You can check if the production qualifies for the relief.

What you can claim

You can claim an expenditure credit at a rate of 34% of your qualifying expenditure. Qualifying expenditure will be the lower of either:

• 80% of total core costs
• the amount of UK core costs

You will need to work out the amount of expenditure credit:

• due to your company
• used to pay off your tax liabilities
• surrendered to other companies
• due as a payable credit

1. Your company’s total expenditure credits for a period are taxed at the main rate of Corporation Tax.Tax. 

2. They are then used to pay off your Corporation Tax liability.liability. 

They can also be used to pay off other tax liabilities if you have them, or surrendered to other group companies.companies. 

If you have credit remaining after thesethis, steps, you will receive a payable credit for that amount.

Work

When outyou corecan costs

CoreYou costsmay aremake, whatamend isor spentwithdraw ona designing,claim producingfor andcreative testingindustry tax reliefs up to 2 years after the videoend game

Whatof you’llthe need

ForHMRC eachmay productionagree youto mustaccept provide:late claims in some circumstances.

• How to claim

  Watch a Britishvideo culturalabout certificatehow fromto theclaim BritishCreative FilmIndustry InstituteTax —relief.

  How ifto themake gamea isclaim stillfor inCreative development,Industries youTax canRelief.

  Claim providethe anexpenditure interimcredits certificateon andyour sendCompany theTax finalReturn.

  From certificateApril when2025, you must include the gameCT600P iscreative complete.industries Certificatessupplementary mustpage bewith inyour datereturn.

  You whenwill youneed submitto them

• statementswork ofout the amount of coreexpenditure costs,credit:
  • due splitto betweenyour UKcompany
  • used andto non-UKpay costsoff your tax liabilities
  • asurrendered breakdownto ofgroup costs by categorycompanies
  • detailsdue ofas connecteda partypayable transactionscredit

  From 1 April 2024, all claims must be accompanied by an additional information form.form. ThisYou willmust allowuse youthis form to providesubmit the necessary evidence to support your claim.

  How

  For toeach claim

  production you must provide:

  You

  • a mustBritish claimcultural forcertificate relieffrom onthe yourBritish CompanyFilm TaxInstitute Return.

  You— mayif make,you amendsend oran withdrawinterim acertificate, claimyou tomust creativesend industrythe taxfinal reliefscertificate upafter tothe twovideo yearsgame afteris complete and the endcertificate must be in date when you submit it

• statements of the periodamount of accountcore thecosts, claimsplit relatesbetween to.

  HMRCUK mayand agreenon-UK tocosts

• a acceptbreakdown lateof claimscosts inby somecategory
• details circumstances.
  of connected party transactions

FurtherGet more information

DetailedYou guidancecan onfind themore Videoinformation, Gamesincluding Expenditureexamples Creditof canhow bethe foundexpenditure credit is calculated, in the creative industries expenditure credit manual.