Game publishers exploit ‘culturally British’ loophole, dodge millions in UK taxes

Game publishers exploit ‘culturally British’ loophole, dodge millions in UK taxes 1

A report from The Guardian reveals that a British tax relief fun has paid the vast majority of its funds — which were originally intended to be earmarked for smaller developers based in the UK — to global game publishers such as Sony, Sega, and Warner.

Specifically, the report reveals that these companies have used this tax loophole to avoid paying tens of millions of pounds in taxes. Video Game Tax Relief (VGTR) allows game publishers to claim back up to 20 percent of some production costs. Each individual claim can amount up to £500,000, and the companies in question have, since VGTR has existed, claimed £20 million (Sega), £30 million (Sony), and £60 million (Warner) in tax breaks. According to The Guardian, the £500k claims are a small fraction of the total number made, and yet they account for 80 percent of the total tax relief — and almost all of those claims are made by big game publishers.

This is not an uncommon industry practice — in fact, this is the second time this year a major game company has reportedly used VGTR to get a tax break. The first one (or rather, the first to be reported on) was Rockstar. And several major game developers and publishers maintain branches in England and Ireland, so they do contribute to the industry’s economy over there in a material way.

Still, it’s a bit galling as VGTR was apparently approved by the European Commission under the presumption it would benefit “a small number of distinctive, culturally British games which have increasing difficulties to find private financing.” The Commission even investigated it to determine that specific fact.

To claim VGTR, companies even have to take a test to prove that their game is either overwhelmingly culturally European or was made primarily in Europe. I scoffed at that notion when I heard that Rockstar was doing it, given that every Rockstar game is somehow a satire of the American Dream. But since lots of these studios put work through their UK branches, they can scoot by on a technicality.

As much of an open secret as it is in the industry, it’s still kind of amusing to hear that the vast majority of games getting a “culturally British” tax break are some of the least British I’ve ever heard of.

Revealed: global video games giants avoiding millions in UK tax on The Guardian

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Prove
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022
Bots Circumvent 2FA Login At Coinbase And Other Crypto Exchanges In 2022
Bots Have Circumvented 2FA Logins At Coinbase And Other Crypto Exchanges In 2022
February 17, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Russia
Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
GamStop
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin29,769 0.80 % 1.37 % 2.40 %
Ethereum1,983.3 0.73 % 0.03 % 5.34 %
Tether1.001 0.29 % 0.04 % 0.04 %
BNB331.41 0.47 % 1.62 % 8.11 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
XRP0.4086 0.32 % 0.32 % 6.97 %
Binance USD1.001 0.08 % 0.01 % 0.09 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana48.97 1.01 % 1.54 % 14.71 %
Polkadot9.990 1.06 % 0.27 % 9.60 %

bitcoin
Bitcoin (BTC) $ 29,962.00
ethereum
Ethereum (ETH) $ 1,987.22
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 332.13
usd-coin
USD Coin (USDC) $ 1.00
xrp
XRP (XRP) $ 0.409321
binance-usd
Binance USD (BUSD) $ 0.998458
cardano
Cardano (ADA) $ 0.521357
solana
Solana (SOL) $ 49.29
polkadot
Polkadot (DOT) $ 10.03