VGTR Qualifying Rules

If you're pushing limits and setting high scores, we're the best co-op partner in the business

Basic Tutorial: Learning the Moves

VGTR is about making you more competitive. It’s a serious incentive and reward scheme, and if your game fits the bill you could be looking at:

  • Lower development costs.
  • Reduced Corporation Tax.
  • Tax credits if you’re making a loss.

Here are the nuts and bolts of it. Assuming your game qualifies, you’ll be able to claim a hefty tax deduction. In real terms, that means the lower of either:

  • 80% of your core costs, or…
  • 100% of what you’ve spent inside the European Economic Area.

If you’ve made a loss, you can even “surrender” it for a 25% tax credit.

Unlocking the Trophy: Qualifying for VGTR

To claim VGTR, you’ve got to hit a few basic benchmarks. PC, console and mobile games can all qualify, but you need to be:

  • Registered for Corporation Tax.
  • Doing most of the planning, creating and testing of the game.
  • The only company that’s making a VGTR claim for it.
  • Spending at least 25% of your core costs inside the EEA.

After that, you’ve just got to make it through the BFI Cultural Test and you’re over the finish line! Don’t discount this last challenge, though. You’ll need to score at least 16 out of a possible 31 points based on things like:

  • The game’s setting and characters.
  • How it represents British or EEA culture.
  • Where the game’s development team and other staff are from.

Combo Breakers: When Can’t You Claim?

There are a few restrictions on claiming VGTR. If your game’s designed entirely around advertising or gambling, for example, you’ll probably be knocked out of the running. VGTR doesn’t help with concept design expenses or debugging once the game’s finished, either. You also can’t include things like financing, marketing or advertising costs.

The other key thing to remember is that you can’t combine VGTR and R&D tax relief on the same project. It’s important to crunch the numbers properly to see which works out better. The rules around all this can make your head spin if you’re not used to them. Be sure to get in touch with RIFT to see where you stand.

RIFT R&D are the UK’s experts in making innovation pay off. If you’re pushing limits and setting high scores, we’re the best co-op partner in the business.

Contact us today, to start your claim