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HMRC internal manual

Video Games Development Company Manual

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.

Development costs

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.

Audit fees

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.