Video Game Tax Breaks Now Available
UK video games companies are now able to claim tax relief on their production costs
Video game companies across the UK can finally claim tax relief, as the government’s cultural regulations come into force.
Game studios are now able to apply for the relief to claim up to 25 per cent of their production costs, but will have to undergo a ‘cultural test’ to find out if they are eligible. The ‘cultural test’ ensures that the tax relief supports the production of culturally British games.
Companies which pass the ‘cultural test’ will be able to claim their tax relief against qualifying expenditure incurred since 1 April 2014.
If you’re planning to take advantage of these tax breaks, you can find out more about the ‘cultural test‘ and Video Games Tax Relief in nibusinessinfo‘s guide Creative Industry Tax Reliefs.
Since 95 per cent of UK video games developers are SMEs, it is estimated that the new relief will provide around £35 million of support per year to the sector.
There are currently around 500 games development studios in the UK, employing around 9000 staff. In 2013 sales of video games in the UK totalled £2.19 billion.
Source: nibusinessinfo.co.uk
