Tax Relief

Online game tax breaks supported greater than £ 860 million spent on growth in 2019

28% of the game developments supported by VGTR would not have been possible without them

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A Screen Business report published by the BFI found that the UK video game tax break supported £ 860.4 million in development spending in 2019.

This represented a growth of 22.8% compared to the £ 700.8 million it supported in 2017 and 31% of the total estimated UK industry turnover that year, which was £ 2.77 billion.

Every pound of video game tax breaks generated £ 1.72 of GVA (gross value added) in 2019.

“When all of the effects are factored in, the total economic contribution of the VGTR-backed Games rises to £ 1.07 billion, 15,130 full-time jobs and £ 247.7 million in tax revenue,” the report said. “In 2019 an estimated £ 295.7 million, or 28% of the video game development supported by the tax break, would not have occurred without the tax break, i.e. the additionality created by the tax break.”

The report also provides some facts on the size of the UK games industry, which comprises 2,286 companies and has £ 756 million in business investments between 2017 and 2020.

In 2019, UK-made games accounted for £ 468.9 million in digital consumer sales in the UK and £ 79 million in physical sales.

VGTR is an easy way for studios to reduce the monetary risk they take in developing a game in the UK as it offers a discount on production spend. The GamesIndustry.biz Academy has a number of guides dedicated to the incentive if you are not familiar with how it works.

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