The creators of a console game costing £2 million apply for VGTR. 90% of their costs were spent in the UK or the EEA. The amount that the company can get tax relief on is based on the lower of:
This company is in profit and so receives a tax relief of £288,000 (20% of 1.44million).
A company designs a free-to-play game for mobile devices. Their core costs of £200,000 are entirely incurred in the EEA.
The amount that can be claimed for in this case is £160,000 (being 80% of their total expenditure of £200,000).
In this case, the company is not in profit and so is able to “surrender” a loss for a tax credit of up to 25%. The amount that they receive is £40,000.
A game made available for PC on the Steam platform costs £81,000 to develop. 94% of the costs were spent in the UK or EEA. Once again, the amount that the company can claim tax relief on is based on the lower of either:
In this case the lower is £64800. This company is in profit and so receives tax relief of £12,960 (20% of £64800).
Video Games Tax Relief could be a major upgrade to your finances, and as more companies start to catch on, it’s only going to get more important. With so many still missing out, the countdown is on to get in at the Early Access stage of the scheme. Contact RIFT R&D to start levelling up your game’s prospects.