Video Games: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the economic benefits generated by the (a) Video Games Tax Relief and (b) Video Games Expenditure Credit; and if she will take steps to reform tax incentives.
Answered by James Murray
Video games companies benefit from the Video Games Expenditure Credit (VGEC), which provides a generous tax credit of 34 per cent on UK video games development costs.
A report published by the BFI in 2021 found that VGEC, previously known as the Video Games Tax Relief (VGTR), supported increased spend in the UK by 22.8% between 2017-2019.
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