Video Games: Tax Allowances
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing the Video Games Expenditure Credit (VGEC) to 53%.
Answered by Dan Tomlinson
The Government recognises the importance of the creative industries, including the contribution made by the UK’s video games sector to growth and innovation.
Video games companies already benefit from a generous Video Games Expenditure Credit (VGEC) of 34%. In 2023-24, £327 million of Corporation Tax was relieved through video game tax relief. This generous tax support sits alongside the Department for Culture, Media and Sport’s new £30 million Games Growth package, designed to back the next generation of start‑up studios and talent and attract further inward investment.
The Government is not currently considering increasing either the rate of relief or the qualifying expenditure limits for VGEC.
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