Video Games: Tax Allowances

(asked on 18th February 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the impact on Ireland's competitiveness of its higher rate of video games tax relief at 32 per cent; and whether he has plans to accept the recommendation of The Independent Game Developers’ Association to increase the rate of video games tax relief in the UK.


Answered by
Lucy Frazer Portrait
Lucy Frazer
Secretary of State for Culture, Media and Sport
This question was answered on 28th February 2022

The Government recognises the valuable economic and cultural contribution of the video games industry. The Video Games Tax Relief (VGTR) has supported £4.4 billion of UK expenditure on 1,640 games since its introduction in 2014.

The Government regularly receives proposals for changes to tax reliefs. When considering changes, the Government must ensure they provide support to businesses in a fair way and that taxpayer money is effectively targeted. An uplift in the rate of VGTR is not currently under consideration. However, the Government keeps all tax reliefs under review.

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