On 20 April 2021, Jesse Norman, Financial Secretary to the Treasury, responded to a written question on video games tax allowances.
The question, which was asked by Labour MP for Leeds North-West, Alex Sobel, inquired as to what assessment HM Treasury has made of the potential merits TIGA’s proposals to increase video games tax relief from 25 per cent to 32 per cent.
This question was submitted by TIGA as part of our campaigning for an increase in the rate of relief to 32%.
Norman’s response stated that the Government is keeping all tax reliefs under review, and regularly receives proposals for changes to tax reliefs.
Norman concluded, “when considering changes, HM Treasury must ensure they provide support to businesses across the economy in a fair way.”
The Government’s full response can be read below.
Video Games: Tax Allowances
HM Treasury
20 April 2021
Alex Sobel: To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of the proposal by the games industry to increase video games tax relief from 25 per cent to 32 per cent.
Jesse Norman: 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.