Eligible expenditure: introduction
A Video Games Development Company (VGDC) that qualifies for Video Games Tax Relief (VGTR) in respect of a video game is entitled to claim an additional deduction in computing the profit or loss arising from the separate trade of developing the video game.
The additional deduction is based on the amount of core expenditure that is European Economic Area (EEA) expenditure.
The computation itself is described at VGDC55000. The first step is determining:
- the amount of core expenditure, and
- the extent that core expenditure relates to services or goods provided from within the EEA (VGDC50050).