UK games development tax breaks detailed

The UK government has unveiled details of the cultural test for video games tax relief in its draft legislation released today.

To pass the tests, provided below, a game must be awarded at least 16 points to be eligible for tax breaks.

Developers will be awarded with four points for instance if at least 75 per cent of the game is set in the UK or another EEA state, and three points if only 66 per cent is set in such locations.

Other tests includes how many characters depicted in the title are from the UK or another EEA state, if the game depicts a British story or one which relates to an EEA state, and whether the title helps promote, develop and enhance British culture.

One potential point of controversy however could stem from points available for British staff in specific positions. For example, one point could be awarded if the project leader "is a qualifying person". This also applies to the positions of scriptwriters, composers, artists, programmers, designers and the head of department.

A point is also awarded if at least 50 per cent of the development team are "qualifying persons".

You can read the Cultural Test in full on MCV’s sister site Develop.

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