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- Claiming VGTR
The cultural test and more
VGTR application process
Video Games Tax Relief claims are often seen as a simple matter of passing a cultural test, however this is just one stage of a process that requires time and expertise in order to benefit from the relief.
Confirm the eligibility of your company and game/s
Apply to BFI for certification with proofs and budget financials
Submit claim with BFI certification financials & tax comps to HMRC
HMRC agrees claim and issues tax rebate or credit
VGTR can be claimed by a Video Games Development Company (VGDC) developing a video game. There can only be one VGDC for each relevant video game.
The company must:
- be responsible for designing, producing and testing the video game
- be actively engaged in planning and decision-making during the design, production and testing of the video game and
- developing a game where at least 25% of core expenditure is incurred in goods or services provided from within the European Economic Area
- directly negotiate, contract and pay for rights, goods and services relating to the video game
The VGDC itself must be developing:
- a British video game
- a game that is intended for commercial supply
- a game where at least 25% of core expenditure is incurred in goods or services provided from within the European Economic Area
- a game that is not produced for advertising or promotional purpose
- a game that is not produced for the purposes of gambling
Would you like to know more about your eligibility for VGTR?
The BFI Cultural Test
Is a means of qualifying a video game as British
To pass the cultural test, the game in question
- will need to achieve a minimum of 16 points out of a possible 31 points
A certificate is awarded to any games that score sufficient points on the test
Once Creative Industry claims have been approved by the BFI for their cultural content, they’re evaluated for tax purposes by HMRC’s specialist incentives unit in Manchester.
HMRC’s role is to evaluate and verify the financials of the submission. Including budgets, costs, revenues and tax computations before approving the claim.
As independent technology and tax experts, MMP are able to do all the work required for the submission or provide all the necessary details for your own accountant.