Eligible expenditure: ineligible expenditure
S1217CF Corporation Tax Act 2009
Video Games Tax Relief (VGTR) in respect of a video game trade by a Video Games Development Company (VGDC) is only available on elements of core expenditure (VGDC50010) which is also European Economic Area (EEA) expenditure.
Completion bond and other forms of insurance
Completion bonds are a form of insurance against the risk that a video game may not be completed. Costs of the completion bond do not qualify for VGTR. They are not incurred on video game development activities.
Other forms of insurance, more directly concerned with the video game development activity itself, may qualify.
See VGDC50120 - these costs are not part of core expenditure.
Cost related to hospitality and entertainment are disallowable under normal rules.
Publicity and promotion
Publicity and promotional costs do not qualify for VGTR. They are not concerned with the making of the video game.
These do not relate to video game development activities. They do not qualify for VGTR.
Bank interest and charges
While interest itself is regarded as part of the costs of financing a video game, and therefore not incurred on video game development activities, charges incurred by banks for facilities that are needed by the VGDC to engage in video game development activities are part of the costs of video game development. This includes charges associated with the maintenance of a current account from which suppliers, cast and crew can be paid.