Two new reliefs available in the UK recently came into operation. Both video game relief and theatre tax relief are now available.

Video games companies across the UK are now able to begin claiming tax relief up to 25% on their production costs which is available from 19 August last when the government’s cultural regulations came into force. With tax relief only available for companies producing games that are certified as culturally British, the completion of the legislation in August will see the first companies begin to benefit. The cultural test ensures that the tax relief supports the production of culturally British games. Detailed guidance is available on the relief is available on the HMRC website.

Video games must achieve a level of points which they are awarded based on their cultural content, cultural contribution and the location of the game’s development and nationalities of key personnel working on the project.

Formal certificates for games that pass the cultural test can now be issued by the British Film Institute which administers the cultural test process for the government, and the companies making these games can start claiming their tax relief against qualifying expenditure incurred since 1 April.

The new theatre tax relief which is available from 1 September was launched by the Chancellor. Announced at Autumn Statement 2013, the relief provides an additional corporation tax deduction, or a payable tax credit, worth up to 25% of qualifying expenditure for touring productions and 20% for all other productions. Detailed guidance on theatre tax relief is not yet available from HMRC.