Government addresses TIGA’s call to increase the rate of VGTR in the UK

By November 1, 2022 Industry News

Yesterday, James Cartlidge, Exchequer Secretary at HM Treasury addressed TIGA’s call for an increase in VGTR. Carol Monaghan MP for Glasgow North West asked the Chancellor of the Exchequer what his assessment is of the threat from Ireland’s higher rate of Video Games Tax Relief and what plans are in place to accept TIGA’s recommendation of an increase in VGTR.

Please see the Government’s answer below.

Video Games: Tax Allowances

HM Treasury

31 October 2022

Carol Monaghan MP:  To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Irish Government’s recent announcement of a higher rate of video games tax relief at 32 per cent on the UK’s video games sector; and whether he plans to accept the recommendation of The Independent Game Developers’ Association (TIGA) to increase the rate of video games tax relief in the UK.

James Cartlidge – Exchequer Secretary (HM Treasury): The Government recognises the valuable economic and cultural contribution of the video games industry. The Video Games Tax Relief (VGTR) has supported £5.1 billion of UK expenditure on 1,940 games since its introduction in 2014.

At Spending Review 2021 the government confirmed £8 million for the continuation of the UK Games Fund which provides bespoke support for the UK’s independent video game industry.

The Government regularly receives proposals for changes to tax reliefs. When considering changes, the Government must ensure they provide support to businesses in a fair way and that taxpayer money is effectively targeted. An uplift in the rate of VGTR is not currently under consideration. However, the Government keeps all tax reliefs under review.


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