Corporation Tax Act 2009 section 1217CE

UK expenditure

Section 1217CE sets out the minimum proportion of a video game company's core expenditure that must be UK expenditure in order to qualify for video games tax relief.

• At least 25% of the core expenditure on the video game must be UK expenditure for the company to qualify for relief.
• This is an additional condition that must be met alongside other requirements for video games tax relief.
• HM Treasury has the power to change the 25% minimum threshold by way of regulations.
• This requirement ensures that a meaningful proportion of the development work or spending is connected to the UK.