The Video Games Expenditure Credit (VGEC) is a UK tax initiative designed to bolster the video game industry by offering a refundable tax credit on eligible production costs to companies involved in video game development.
Key Benefits of VGEC
The VGEC provides a range of advantages tailored to the needs of game developers:
To access the VGEC, developers must ensure their project meets specific requirements. These are:
The game must pass the UK Video Games Cultural Test, administered by the British Film Institute (BFI). The test evaluates whether the game has a cultural connection to the UK based on:
Passing this test certifies a game as a British video game, making it eligible for VGEC.
At least 10% of the game’s core development costs must be used and consumed within the UK.
The game must be developed for commercial release. Projects such as internal prototypes, educational tools, or non-commercial games (e.g., free-to-play hobby projects) do not qualify for VGEC.
To claim VGEC, the company must:
The core expenditure for the Video Games Expenditure Credit includes costs that are directly related, such as:
Eligible Costs:
Excluded Costs:
Navigating the VGEC process can be complex, but our team of experts is here to help maximise your claim and streamline the application process. We offer:
Ready to Transform Your Game Development?
Discover how the Video Games Expenditure Credit (VGEC) can fuel your studio’s growth and innovation. Contact us today for a no obligation consultation and take the first step toward unlocking your project’s full potential!
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