UK Creative Sector Hits £100 Billion Contribution Mark
Last week, The Department for Digital, Culture, Media and Sport published estimates that the UK’s Creative Sector had contributed over £101 billion to the UK economy in 2017. The figures were an increase of 6.5% on those reported in 2016 and accounted for 5.5% of total Gross Value Added (GVA) in 2017.
Making up a large portion of this figure was the video games industry, which provided an impressive contribution and remains an area constantly delivering more value to the UK economy.
CEO of TIGA (The Independent Game Developers’ Association), Dr Richard Wilson was quoted as saying “The creative industries have broken the £100 billion barrier for the very first time, which is a momentous achievement. The video games industry has played its part. We continue to be a robust, innovative industry that continues to produce highly successful titles.”
The VGTR Impact
The Video Games Tax Relief (VGTR) scheme has contributed significantly to the growth and development of the video games industry since its introduction in 2014. Since the scheme was introduced, £230m has been paid out to video game development companies (VGDCs) in response to 770 claims.
The VGTR scheme aims to promote the sustainable production of culturally relevant video games in the UK. It is aimed directly at companies producing video games and has been available from 2014. In 2017/18, there were 100 video games completed that claimed VGTR, with UK expenditure of £131m.
To be eligible for VGTR, your client's company must be responsible for most of the planning, designing, developing, testing and producing of a game. This company must fall within UK tax jurisdiction and at least 25% of the cost must be incurred in the European Economic Area.
Companies who are looking to determine their VGTR eligibility can contact VGTR specialists such as Myriad Associates to determine whether there is any mileage in pursuing a claim. Determining eligibility is the first step any VGDC should take and VGTR specialists will be able to determine this free of charge via a 5-minute call.
As the leading experts in tax relief for UK game developers, Myriad Associates are your client's best choice for supporting an application for Video Games Tax Relief. Specialists can guide you through the BFI cultural test and ensure that your VGTR claim is fully maximised. To learn more about how Myriad could help your clients claim VGTR, click here.