Ukie responds to consultation on Audio-visual Tax Reliefs

Submitted – 10th February 2023

Ukie has submitted its response to the government’s consultation on audio-visual tax reliefs, urging a ‘do no harm’ approach to the Video Games Tax Relief (VGTR). Since its introduction in 2014, VGTR has been crucial in supporting the growth of the UK games industry. Ukie emphasised the need to maintain the relief’s generosity and accessibility, warning that potential reforms could make it less competitive. Through an industry-wide survey, Ukie gathered evidence showing 89% of respondents agreed VGTR has had a positive impact.

Ukie raised concerns about the proposed removal of European Economic Area (EEA) expenditure from VGTR eligibility, citing that 79% of survey respondents believe this change would negatively impact UK games production. The removal would increase costs for UK businesses and exacerbate existing skills shortages. Ukie also cautioned about the pace of reforms, highlighting the need for measures to strengthen talent pipelines. Additionally, Ukie stressed the importance of keeping VGTR internationally competitive, calling for policy changes to ensure the UK remains an attractive destination for global development.