A company may generally raise Video Games Tax Relief up to GBP5m a year under the EIS (VGTR) and Video Games (this limit is increased to GBP10m Expenditure Credit (VGEC) if the company qualifies as a ‘knowledge intensive company’, VGTR provides tax relief to being heavily engaged in research incentivise the production of video and development activities). This games in the UK provided certain limit is aggregated with certain other conditions are met. It is available investments, including those made to UK resident companies or the under the Venture Capital Trust UK permanent establishments of Scheme and other notified State non-UK companies and offers an Aid (such as certain grants) additional deduction against UK received by the company. corporation tax. Should the company be loss-making, the deduction Again, time limits need to be can be surrendered to HMRC for observed and qualifying criteria a payable tax credit instead. met. In particular, EIS investments must generally be made no later Relief is potentially available in than seven years following the date respect of a wide range of ‘video on which the company first sells a games’, including games developed product (increased to ten years for for consoles, computers and apps. knowledge intensive companies), To qualify for relief, games must and a company may not raise more meet a number of conditions than GBP5m (per year) and GBP12m including that they’re developed (in total) under SEIS/EIS and certain for commercial exploitation and are other tax advantaged schemes ‘British’ video games, meaning they (increased to a total of GBP20m for meet certain ‘cultural’ tests. knowledge intensive companies). It should, however, be noted that the VGTR isn’t available in respect of anything produced for advertising 32