Video Games Tax Relief (VGTR)
Contents
Understanding the Video Games Tax Relief
A detailed guide to the Video Games Tax Relief can be found in Ukie's Access to Finance Guide.
For a more detailed guide to VGTR, HMRC's Video Games Development Company Manual is available here.
Applying for the Cultural Test
You can do that via the BFI website.
Economic Impacts of the VGTR
These can be found in the Screen Business report.
Amount Paid in Tax Relief to Date
According to data released by HMRC in August 2019, VGTR has provided £230m to UK studios across 770 claims since the relief was launched in April 2014. Of that total, £105m was paid out to 345 claims in the financial year 2017-18.
To date, VGTR has been claimed by 480 video game productions, accounting for over £1bn in UK expenditure.
Claims and amount of relief paid on receipts basis
| Paid | |||
|---|---|---|---|
| Year Claim Paid | Number of Games | Number of Claims | Amount (£m) |
| 2014-15 | 10 | 10 | - |
| 2015-16 | 100 | 130 | 45 |
| 2016-17 | 340 | 275 | 71 |
| 2017-18 | 475 | 345 | 104 |
| 2018-19 | 535 | 345 | 103 |
| Total | - | 1,110 | 324 |
NB. No total provided for number of games, as a single game can be claimed in multiple years.
Claims and amount of relief paid on receipts basis, split by size of claim
| 2016-17 | 2017-18 | 2018-19 | ||||
|---|---|---|---|---|---|---|
| Size of claim | Number | Amount (£m) | Number | Amount (£m) | Number | Amount (£m) |
| Up to £5,000 | 30 | - | 65 | - | 50 | - |
| £5,001 to £10,000 | 35 | - | 35 | - | 25 | - |
| £10,001 to £25,000 | 55 | 1 | 80 | 1 | 65 | 1 |
| £25,001 to £50,000 | 35 | 1 | 40 | 1 | 55 | 2 |
| £50,001 to £100,000 | 30 | 2 | 30 | 2 | 45 | 3 |
| £100,001 to £500,000 | 50 | 11 | 65 | 13 | 55 | 12 |
| £500,001 to £1,000,000 | 20 | 13 | 15 | 9 | 20 | 12 |
| Over £1,000,000 | 15 | 42 | 25 | 77 | 30 | 73 |
| Total | 275 | 71 | 345 | 104 | 345 | 103 |
NB. Numbers are rounded to the nearest 5 and amounts to £1 million. Totals may not sum due to rounding.
Certifications by Fiscal (Financial) Year
Latest data available via the BFI here
Final Certifications per Year
| Year | Number | EEA/UK spend (£m) | Total budget (£m) | UK spend as a % of total budget |
|---|---|---|---|---|
| Apr 2014-Mar 2015 | 19 | 14.3 | 15.1 | 95.2% |
| Apr 2014-Mar 2016 | 133 | 189.0 | 275.3 | 68.7% |
| Apr 2014-Mar 2017 | 214 | 220.8 | 258.3 | 85.5% |
| Apr 2014-Mar 2018 | 201 | 247.8 | 262.6 | 94.4% |
| Apr 2014-Mar 2019 | 188 | 430.1 | 1,042.1 | 41.3% |
Interim Certifications per Year
| Year | Number | EEA/UK spend (£m) | Total budget (£m) | UK spend as a % of total budget |
|---|---|---|---|---|
| Apr 2014-Mar 2015 | 47 | 157.7 | 166.32 | 94.7% |
| Apr 2014-Mar 2016 | 136 | 575.75 | 631.22 | 91.22% |
| Apr 2014-Mar 2017 | 187 | 412.27 | 482.22 | 85.5% |
| Apr 2014-Mar 2018 | 181 | 540.43 | 1,107.17 | 48.8% |
| Apr 2014-Mar 2019 | 151 | 411.91 | 536.96 | 41.3% |
Median budgets of interim video game cultural test certifications
| Year | Median budget (£m) |
|---|---|
| 2014* | 0.2 |
| 2015 | 0.6 |
| 2016 | 0.4 |
| 2017 | 0.4 |
| 2018 | 0.5 |
| 2019 (Q1) | 1.0 |
NB. As the tax relief for video games commenced in April 2014, median budget for 2014 is for Q2-Q4.
Certifications by Calendar Year
Latest data available via the BFI here
Final Certifications per Year
| Year | Number | UK/EEA spend (£m) | Total budget (£m) | UK/EEA spend as a % of total budget |
|---|---|---|---|---|
| 2015 | 116 | 180.9 | 265.6 | 68.1% |
| 2016 | 189 | 202.2 | 224.5 | 90.1% |
| 2017 | 212 | 248.8 | 277.5 | 89.7% |
| 2018 | 195 | 201.9 | 263.9 | 76.5% |
Interim Certifications per Year
| Year | Number | UK/EEA spend (£m) | Total budget (£m) | UK/EEA spend as a % of total budget |
|---|---|---|---|---|
| 2015 | 121 | 548.0 | 603.6 | 90.8% |
| 2016 | 176 | 401.7 | 466.9 | 86.0% |
| 2017 | 179 | 434.3 | 461.7 | 94.1% |
| 2018 | 170 | 517.6 | 1,106.4 | 46.8% |
Median budgets of interim video game cultural test certifications
| Year | Median budget (£m) |
|---|---|
| 2015 | 0.6 |
| 2016 | 0.4 |
| 2017 | 0.4 |
| 2018 | 0.5 |
