GamingTaxRelief
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ARE YOU READY TO MAKE A VIDEO GAME DEVELOPMENT TAX RELIEF CLAIM? As you may already be aware since the budget was announced last month, video games development tax relief has been made available to UK companies involved in such development activities and applies to accounting periods beginning on or after 1 April 2014. As you may already be aware since the budget was announced last month, video games development tax relief has been made available to UK companies involved in such development activities and applies to accounting periods beginning on or after 1 April 2014. Accounting periods beginning before this date but ending after it can be considered with the qualifying expenditure falling after the noted date apportioned on a fair and reasonable basis as part of a claim for tax relief. The tax regime is expected to become legislation when Finance Bill 2014 receives Royal Assent, most likely sometime in the summer (July) this year. The tax credit available amounts to £20 for every £100 spent in a tax loss scenario, with a reduction in corporation tax liability/tax refund being possible tax benefits. The tax accounting is slightly different to normal corporation tax computational approach hence specialist help is advised. There are clear synergies between R&D tax relief and video games development. Since for the same expenditure only one of these tax benefits can be claimed, Leyton will be capable of efficiently identifying these synergies thereby increasing the return on investment where both these tax reliefs are in question. Main conditions that must be satisfied are: The video game must be intended for public supply The video games must be British in accordance with the Cultural test 25% of the core expenditure must be UK expenditure QUALIFYING VIDEO GAME This is defined in a negative way by stating that a video game does not include anything made for advertising, promotional purposes or gambling (within the gambling act). This includes the video game’s sound track. QUALIFYING VIDEO GAMES DEVELOPMENT COSTS Qualifying expenditure is not as restrictive as R&D qualifying categories. Costs incurred by the company on the development activities (designing, producing and testing) of a video game or activities with the view of exploiting the video game can be included in the claim. An established and unique optimisation process A strong team comprised of scientific and technical experts A complete end-to-end service tailored to your needs Experience in a range of industry sectors An active and continuous monitoring of legal, financial and technical developments A success-fee business model Assistance in the event of a Revenue Audit Our added-Value
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Transcript of GamingTaxRelief
Are you reAdy to mAke A video gAme development tAx relief clAim?As you may already be aware since the budget was announced last month, video games development tax relief has been made available to UK companies involved in such development activities and applies to accounting periods beginning on or after 1 April 2014.
As you may already be aware since the budget was announced last month, video games development tax relief has been made available to UK companies involved in such development activities and applies to accounting periods beginning on or after 1 April 2014.
Accounting periods beginning before this date but ending after it can be considered with the qualifying expenditure falling after the noted date apportioned on a fair and reasonable basis as part of a claim for tax relief.
The tax regime is expected to become legislation when Finance Bill 2014 receives Royal Assent, most likely sometime in the summer (July) this year.
The tax credit available amounts to £20 for every £100 spent in a tax loss scenario, with a reduction in corporation tax liability/tax refund being possible tax benefits.
The tax accounting is slightly different to normal corporation tax computational approach hence specialist help is advised.
There are clear synergies between R&D tax relief and video games development. Since for the same expenditure only one of these tax benefits can be claimed, Leyton will be capable of efficiently identifying these synergies thereby increasing the return on investment where both these tax reliefs are in question.
Main conditions that must be satisfied are: The video game must be intended for public supply The video games must be British in accordance with the Cultural test 25% of the core expenditure must be UK expenditure
QuAlifying video gAme This is defined in a negative way by stating that a video game does not include anything made for advertising, promotional purposes or gambling (within the gambling act). This includes the video game’s sound track.
QuAlifying video gAmes development costs Qualifying expenditure is not as restrictive as R&D qualifying categories. Costs incurred by the company on the development activities (designing, producing and testing) of a video game or activities with the view of exploiting the video game can be included in the claim.
An established and unique optimisation process A strong team comprised of scientific and
technical experts A complete end-to-end service tailored to
your needs Experience in a range of industry sectors An active and continuous monitoring of
legal, financial and technical developments A success-fee business model Assistance in the event of a Revenue Audit
Our added-Value
How leyton cAn Help
Review and document the development activities with both the Video games development tax relief scheme and the R&D tax relief scheme in mind Guide your company through the initial step of claiming video games development tax relief which is the Cultural test in order to secure an interim or final
certificate from the British Film Institute. Draft certifications are possible prior to Royal Assent of Finance Bill 2014 Prepare the documentation required for the cultural test and assist in the submission Prepare documentation in support of the claim once the certificate has been issued Ensure the tax relief claim made by the company is the most optimal Provide assistance in defending an HMRC enquiry in the claim, if it arises
About Leyton
Leyton is a leading consultancy dedicated to providing tailor-made cost optimisation solutions to its clients. In the UK, Leyton specialises inResearch & Development (R&D) Tax Relief claims, R&D grant applications and HMRC R&D Audit support, as well as Patent Box and LLP Structures.Based on solid experience and with the support of multidisciplinary tax, scientific and engineering teams, Leyton delivers professional servicesof the highest quality.
Further Information at www.leyton.com/ukHoratio House – 77-85 Fulham Palace Road – London – W6 8JAPhone: +44 (0)207 043 2300
pleAse contAct us on 020 7043 2300
For further information and to discuss how these changes can benefit your business
