Video Games: Tax Allowances
The question
To ask the Chancellor of the Exchequer, how many video games studios have received (a) Video Games Tax Relief and (b) Video Games Expenditure Credit since they were introduced.
Answered by Dan Tomlinson
The Government recognises the importance of the creative industries, including the key role they play in driving economic growth. Video games jobs are highly productive at nearly double the average national output, and technology developed by games businesses contributes an estimated £1.3 billion output to the UK economy each year.
Video games companies benefit from the Video Games Expenditure Credit (VGEC), which was introduced on 1 January 2024 and provides a tax credit of 34 per cent on UK video games development costs. All new games must claim VGEC from 1 April 2025 and VGTR will expire in April 2027.
HMRC publish annual creative industry tax relief statistics on gov.uk, that can be found here: https://www.gov.uk/government/collections/creative-industries-statistics
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