Video Games: Tax Allowances
The question
To ask the Chancellor of the Exchequer, if she will make it her policy to review the level of the Video Games Expenditure Credit for projects with a budget of £10m or less.
Answered by James Murray
The Government recognises the importance of the UK’s video games sector and the key role it plays in driving economic growth. As part of our modern Industrial Strategy, we are developing a creative industries sector plan with business, local leaders, and sector experts.
The Government supports the video games sector through the tax system and through funding. Video games companies already benefit from the Video Games Expenditure Credit (VGEC), which provides a generous tax credit of 34 per cent on UK video games development costs.
In addition, companies may benefit from the £5.5 million UK Games Fund for 2025/26, which helps high-potential start-ups scale-up.
When considering new tax reliefs, the Government has to balance a wide range of factors, including the fiscal position and complexity of the tax system.
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