TIGA is the only organisation to have consistently campaigned for Video Games Tax Relief (VGTR). We waged a focused campaign for the introduction of Video Games Tax Relief between 2008 and 2014. Our campaign involved meetings with Ministers, MPs and civil servants, publication of research papers and significant media activity.  

TIGA campaigned for VGTR to enable the UK games industry to compete on a more level playing field against our overseas competitors, many of whom benefit from very generous tax reliefs and fiscal incentives.  

VGTR has been available to UK games companies since April 2014. It has powered growth in our sector. According to statistics released by HMRC in 2022, since VGTR was introduced in 2014, companies have made claims for 1,940 games, with UK expenditure of £5.1 billion. A total of £830 million has been paid since the Relief was introduced. Research published by TIGA shows that between 2014 and 2023, headcount in the UK video games development sector has increased at an annual average rate of 9 per cent. VGTR has boosted investment, employment, economic growth and exports.

TIGA initially secured Video Games Tax Relief in the Labour Government’s March 2010 Budget. Unfortunately, the Coalition Government dropped VGTR in the June 2010 Budget. Some people in politics and industry called on TIGA to end its campaign. TIGA ignored the siren calls to give up and instead continued to wage a vigorous campaign for the introduction of VGTR.

After another 18 months of relentless work TIGA successfully persuaded the Coalition Government in the March 2012 Budget to back VGTR. However, VGTR was then blocked by the EU Commission as it announced a formal investigation into the proposal in April 2013.

TIGA then submitted compelling evidence to the EU Commission, coordinating its efforts with the UK Government and its partners in the European Games Developers’ Federation (EGDF) to successfully assuage the EU Commission’s concerns. Finally, TIGA’s campaign for a VGTR reached a successful conclusion in March 2014 when the EU Commission finally consented to its introduction in the UK.

TIGA has continued to advance proposals for enhancing VGTR. In 2015, 2019 and 2021 we recommended exploring the case for an increase in the rate of VGTR and in 2016 we recommended the removal of the outsourcing cap of £1 million.



In February 2021 and 2023 TIGA published reports demonstrating that a higher rate of VGTR would result in more investment and greater headcount growth. 

The Government announced plans to replace VGTR with a Video Games Expenditure Credit (VGEC) in the Spring Budget 2023, following consultations with TIGA and the wider games industry. TIGA responded to Government consultations on VGEC in February and September 2023, engaged with Government officials and set out our position in letters to The Chancellor of the Exchequer, The Secretary of State for Culture, Media and Sport, The Financial Secretary to the Treasury, and HMRC officials. TIGA’s proposals included the elimination of the £1 million outsourcing cap; an increase in the rate of relief; and for ‘connected party profits’ to qualify for VGEC.



In the Autumn Statement on 22nd November 2023, the Government announced or confirmed four positive developments in relation to the VGEC. 

(1) VGEC will have a rate of 34 per cent applicable to 80 per cent of qualifying costs and subject to Corporation Tax of 25 per cent. The net benefit to the claimant will increase from the current rate of 20 per cent of qualifying expenditure to 20.4 per cent. 

(2) VGEC will apply to connected party profits, provided that the connected party transaction is at arm’s length, details are disclosed to HMRC and constitutes qualifying expenditure. 

(3) The £1 million subcontracting cap will be removed. 

(4) All qualifying costs for video games will need to be used-and-consumed within the UK. EEA expenditure will no longer be eligible for relief. This will provide a big boost to service providers in the UK.

TIGA is now campaigning for a higher rate of VGEC and the introduction of an Independent Games Tax Credit.

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“I was very impressed by the case that you made in relation to tax breaks for computer games and I pressed this point again when I wrote to the Chancellor of the Exchequer about the budget…I…congratulate you and TIGA on being such a driving force in achieving it [Video Game Tax Relief].”

John Swinney MSP,Deputy First Minister of Scotland and former Cabinet Secretary for Finance and Sustainable Growth (2007-2016)
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“Unlike many trade associations, TIGA has consistently provided strong empirical evidence to back up its case for Government support and investment. TIGA made a powerful case for a tax credit for games production and I was pleased to work with TIGA in securing this measure in the recent Budget [i.e. 2012 budget].”
“As an MP I meet many trade associations, public affairs organisations and lobbying groups. TIGA has earned a unique reputation as an independent, professional and tenacious campaigning body. TIGA has waged a seven year campaign for Video Games Tax Relief. Along the way, TIGA has managed to persuade the UK’s four major political parties, three governments (Labour in 2010, the Scottish Government in 2011 and the Coalition Government in 2012) and finally the EU Commission in 2014 to support Video Games Tax Relief. To put it simply, Games Tax Relief would not have happened without TIGA. I’m delighted to have been able to work with TIGA to successively deliver Games Tax Relief and to support an industry that I care passionately about.”

Justin Tomlinson MPformer Chair of the All Party Computer and Video Games Industry Group, and Minister of State for Disabled People, Work and Health
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“I pay tribute to TIGA for playing a leading role in raising the profile of the games industry in Parliament and for playing a critical role in lobbying for this tax change [Video Game Tax Relief]”.
“The final approval of tax relief for the video games industry is terrific news and will ensure that the UK remains one of the leaders in the development and production of electronic games. TIGA deserves considerable credit for the success of their campaign which they have promoted over a number of years.”

Rt Hon John Whittingdale OBE MPMinister of State for Media and Data, and former Chair of the Culture, Media and Sport Select Committee
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"Both as a Government Minister and from the Opposition benches, I have seen TIGA campaigning professionally and tenaciously for Games Tax Relief. TIGA played a critical role in securing the Relief, convincing successive governments - a difficult job in both cases. I hope the tax credit which their lobbying has secured, and which I strongly support, will provide a powerful boost to the UK video games industry."

Rt Hon Stephen Timms MPChair of the Work and Pensions Select Committee
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“I have no doubt that with TIGA - the UK’s best trade association – the issues that matter to the video games sector will remain high up the political agenda.”

Tom Watsonformer Deputy Leader of the Labour Party (2015-2019) and former Shadow Secretary of State for Digital, Culture, Media and Sport (2016-2019)
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“TIGA’s proposal to increase the rate of VGTR from 25 per cent to 32 per cent would give a powerful stimulus to the UK video games industry. An increase in the rate of VGTR would boost investment and employment, enable more studios to self-publish their own IP, and enable the UK games industry to compete more effectively around the world. With more and more young people developing an interest in a career in the games industry, it is vital we do all we can to give the industry the best possible future and, subsequently, to create as many high skilled job opportunities as possible.” - 5 March 2021

Dehenna Davison MPVice-Chair of the All Party Parliamentary Group for Video Games