UK Video Game Tax Relief Claims See 10% Surge in 2023

According to the HMRC, payouts for video game tax relief experienced a 10% increase in the 2022-23 financial year. A total of 525 claims were submitted, amounting to £282 million in relief paid out, as indicated by the UK government's Creative Industries Statistics commentary. The rise is attributed to an increase in high-value claims exceeding £2 million, as well as the tax relief being less severely impacted by the COVID-19 pandemic compared to other creative sector reliefs. Notably, nearly half of the claims were for amounts of £50,000 or less, while claims over £500,000 accounted for 87% of the total relief paid. Furthermore, the HMRC has acknowledged a substantial error in its previous year's data, revising the payout data for the UK's Video Game Tax Relief by 36%, from £189 million to £257 million, for the 2021-22 financial year. This £68 million adjustment is reportedly the largest revision ever made by the HMRC, according to Games Investor Consulting. Initially, the HMRC had reported a 6% year-on-year decrease in tax relief claims.