Latest data from the UK Government’s Creative Industries Statistics Commentary: August 2023 have shown that:
- There were 345 claims made for Video Games Tax Relief in relation to the 2021-22 financial year, totaling £189 million of relief.
- The amount of relief fell by 6% compared to the previous year. This is the first fall in VGTR payments since the Relief came into effect in 2014. The decline is due to a fall in high value claims of over £2m.
- The number of VGTR claims has remained steady since 2016-17.
- Majority of claims in 2021-22 were for small amounts, with 49% of all claims being for £50,000 or less. However, this represents just 5% of the total amount of relief. Claims of over £500,000 account for 78% of the total relief.
Dr Richard Wilson OBE, CEO of TIGA, the independent games developers association which spearheaded the lobbying for Video Games Tax Relief, said:
“The latest data from the Government show that Video Games Tax Relief is helping medium-sized and larger games studios to create bigger production games. VGTR also helps to encourage FDI (Foreign Direct Investment) into the UK, which is important for the growth of the UK games industry, and to generate further employment in the sector.
“However, it’s clear that VGTR is vitally important for many small studios – with 49% of all claims being for £50,000 or less.
“If we want to encourage more small studios to benefit from VGTR and scaleup and grow, then we must ensure that the forthcoming Video Games Expenditure Credit, which will replace VGTR, is administratively simple for micro and small studios to access.”
Jason Kingsley, TIGA Chairman and CEO & Creative Director at Rebellion, added:
“We need an environment that supports medium to large scale studios, and encourages FDI. But the UK games industry has been built on entrepreneurs, start-ups and small studios so we urge the Government to ensure that the Video Games Expenditure Credit is easily accessible to these smaller businesses, as well as medium and large studios, to safeguard the UK’s position as a powerhouse in games development.”