On 16 February 2021, Jesse Norman, Financial Secretary at HM Treasury, responded to a written question on video games tax allowances.
The question, asked by Jonathan Gullis, Conservative MP for Stoke-on-Trent North, inquired as to what assessment the Chancellor of the Exchequer has made of the potential economic merits of TIGA’s proposal for an increase in the rate of video games tax relief (VGTR) from 25 per cent to 32 per cent.
Norman’s response stated that in 2019-2020, VGTR supported UK expenditure of £355 million on the production of 150 video games.
Norman concluded by stating that the Government keeps all tax reliefs under review and must ensure that support is provided to businesses across the economy in a fair way which represents good value for money for the taxpayer.
Normans full answer can be read below:
Video Games: Tax Allowances
HM Treasury
16 February 2021
Jonathan Gullis (Con): To ask the Chancellor of the Exchequer, what assessment he has made of the potential economic merits of the Independent Game Developers’ Association’s proposal for an increase in the rate of video games tax relief from 25 per cent to 32 per cent.
Jesse Norman (Financial Secretary): In 2019-20 the Video Games Tax Relief (VGTR) supported UK expenditure of £355 million on the production of 150 video games.
The Government keeps all tax reliefs under review, and regularly receives proposals for changes to tax reliefs. When considering changes, HM Treasury must ensure they provide support to businesses across the economy in a fair way and represent good value for money for the taxpayer.