UKIE calls on UK government to modernise video games tax credit

UK video game trade body UKIE is calling on the UK government to modernise the Video Games Expenditure Credit ahead of the Autumn Budget. GamesIndustry.biz, Mezha.net, and GameDev.net all report that the organisation is pushing for changes to the tax credit system. UKIE chief executive officer stated that reforming the expenditure credit is essential to ensure the UK remains a competitive place to build and grow games businesses. [1][2][3]

GamesIndustry.biz reports that UKIE is also asking for a new fund to address a domestic growth capital gap between 500,000 pounds and 2 million pounds. Additionally, the trade body is seeking incentives to prevent local game studios and industry talent from moving to countries that offer better tax credits. GamesIndustry.biz notes that UKIE has engaged in sustained work with its members and industry partners to present evidence for these reforms to the government. [1]

The Video Games Expenditure Credit is part of the broader UK tax incentive system. Similar tax frameworks include the Research and Development Expenditure Credit, which was introduced in 2013 to encourage large companies to invest in research and development within the UK by offering reduced tax bills or payable cash credits as a proportion of their spending. [4]

The proposals come immediately before the delivery of the 2026 United Kingdom budget. The budget will be presented to the House of Commons by Chancellor of the Exchequer John Healey on 28 October 2026. [5]