UK Games Industry Tax Incentives Up 48% Compared to 2019-2020
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A new report from the UK tax authority HM Revenue and Customs (HMRC) shows today that over £ 180 million ($ 247 million) has been claimed through the UK’s Video Games Tax Relief (VGTR) program for the 2020-2021 tax year.
The HMRC approved 350 claims for 640 games for the year.
The number represents a 48% increase in gaming tax breaks compared to 2019-2020, which saw a £ 121 million ($ 166 million) relief.
The report also said 87% of total tax claims were for amounts over £ 500,000 ($ 686,441), which was also an increase over the previous year.
According to HMRC, claims have been made for 1,640 games in the UK since the video games tax relief program was launched in 2014.
The UK gaming tax break program has been a frequent reference point for trade group IGEA in successfully lobbying the Australian government to approve its own tax breaks. These interruptions are expected to come into effect in 2022.