TIGA pushes for 39% games tax credit in the UK

TIGA has proposed lifting the Video Games Expenditure Credit (VGEC) rate from 34% to 39% in its submission to the Government’s Spending Review to support the UK games industry.

The UK trade association also recommended raising qualifying expenditure from 80% to 100%. 

In addition, it proposed an Independent Games Tax Credit (IGTC) at 53% on 80% of qualifying costs for games with budgets up to £23.5 million, mirroring the Independent Film Tax Credit. TIGA said the changes would create jobs, boost investment and support regional industry growth.

The UK introduced tax relief for game developers in 2014 to stay competitive with other countries, but this old system (VGTR) will be phased out by 2027. The new VGEC, available since January 2024, replaces it.

Driving growth in the UK 

“The UK video games industry can make an important contribution to economic growth,” said TIGA CEO Dr Richard Wilson OBE. “Our sector provides high skilled employment, is export focused and supports economic activity in clusters across the UK. 

“VGEC is a crucial measure for attracting investment, creating jobs, and fostering innovation. TIGA’s proposals for VGEC and for an IGTC can drive growth in the UK games industry and support the Government’s objective of securing the highest sustained growth in the G7.” 

TIGA chairman, creative director and CEO of Rebellion Jason Kingsley added: “TIGA is the only organisation to have consistently argued for VGTR and was the first to propose an IGTC. 

“Our proposals would incentivise the development of new games, enable more studios to scale-up, encourage investment and boost exports.”