Research and Development (R&D) Tax Relief: Who Qualifies and What You Get
Learn how companies can claim tax deductions or cash credits by investing in technological innovations within the gaming industry.
This scheme allows companies to claim tax relief for money spent on developing new or improved technologies. It is designed to reward businesses that take on technical risks to drive innovation.
Who it's for
This relief is available to companies that are working on technological advancements. In the gaming industry, this specifically applies to those developing new game engines or specialized technical tools.
What you get
Depending on your company's situation, you can receive an additional deduction from your taxable profits. In some cases, you may receive a cash credit instead.
What it costs you
To claim this relief, you must provide a technical report. This document must prove that your work qualifies as true innovation rather than just standard software development or coding.
The catch to know
Most everyday game development tasks do not qualify. For example, standard game asset creation is rarely accepted as R&D; the work must involve solving a genuine technical challenge.
How to apply
- Determine if your technical work meets the definition of innovation.
- Prepare a detailed technical report justifying your claims.
- Calculate your eligible expenses and technical advancements.
- Submit your claim through the official portal: https://www.gov.uk/guidance/corporation-tax-research-and-development-rd-relief