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UK government reveals video games cultural test requirement for tax relief

Tuesday, 11 December 2012 14:57 GMT By Stephany Nunneley

The UK government has released a list of criteria game developers will need to meet in order qualify for tax relief, via a cultural test attached to a legislation draft submitted today.

Games developed in the UK will earn points awarded on factors ranging from whether it contains a British storyline, to where the game takes place and where it was created.

How the game contributes to British culture will also be a factor.

The tax break, outlined by Chancellor George Osborne last week, will offer a payable tax credit worth up to 25% of qualifying expenditure, and is to be introduced in April 2013 with a relief schedule of £15 million divvied out in 2013-14, and £35 million in 2014-15.

Back in October, UKIE provided a list of guidelines to the British Government, suggesting ways in which it could assess the cultural relevance of games when developers and publishers applied for tax relief.

The Cultural Test is posted in full below, courtesy of Develop. Thanks, CVG.

(1) A video game may be certified as a British video game under section 1217CB(1) of the Act only if it passes the following cultural test.

(2) A video game passes the cultural test if it is awarded at least 16 points in total under paragraphs (3) to (6).

(3) Up to 16 points shall be awarded in respect of the content of the video game as follows—

(A) Up to 4 points depending on the percentage of the video game that is set in the following locations

(i) 4 points if at least 75% is set in the United Kingdom or another EEA state;
(ii) 3 points if at least 66% is set in the United Kingdom or another EEA state or set in an undetermined location;
(iii) 2 points if at least 50% is set in the United Kingdom or another EEA state or set in an undetermined location;
(iv) 1 point if at least 25% is set in the United Kingdom or another EEA state or set in an undetermined location;

(B) Up to 4 points depending on the number of the characters depicted in the video game with the following characteristics

(i) if there are more than three characters depicted in the video game, 4 points if two or three of the three lead characters are from the United Kingdom or another EEA state or from an undetermined location or, if only one of the three lead characters is from the United Kingdom or another EEA state or from an undetermined location, 2 points if that character is the first or second lead, 1 point if that character is the third lead;
(ii) if there are only three characters depicted in the video game, 4 points if two or three of them are from the United Kingdom or another EEA state or from an undetermined location or, if only one of them is from the United Kingdom or another EEA state or from an undetermined location, 2 points if that character is the first or second lead, 1 point if that character is the third lead;
(iii) if there are only two characters depicted in the video game, 4 points if both of them are from the United Kingdom or another EEA state or from an undetermined location, 2 points if one of them is;
(iv) if there is only one character depicted in the video game, 4 points if that character is from the United Kingdom or another EEA state or from an undetermined location;

(C) 4 points if the video game depicts a British story or a story which relates to an EEA state;

(D) up to 4 points depending on the percentage of the original dialogue that is recorded in the English language or in a recognised regional or minority language as follows

(i) 4 points for at least 75%; (ii) 3 points for at least 66%; (iii) 2 points for at least 50%;
(iv) 1 point for at least 25%.
(4) Up to 4 points may be awarded in respect of the contribution of the video game to the promotion, development and enhancement of British culture.

(5) Up to 3 points shall be awarded in respect of work carried out in the making of the video game as follows

(a) 2 points if at least 50% of the work carried out on any of the following is carried out in the United Kingdom

(i) conceptual development; (ii) layout and storyboarding;
(iii) programming;
(iv) visual design;
(b) 1 point if at least 50% of the work carried out on any of the following is carried out in the United Kingdom
(i) performing and recording the music score created for the video game;
(ii) voice recording;
(iii) audio production;
(iv) picture production.

(6) Up to 8 points shall be awarded in respect of the personnel involved in the making of the video game as follows

(a) 1 point if the project leader (or, if there is more than one, the main project leader) is a qualifying person;
(b) 1 point if at least one of the scriptwriters (or, if there are more than three, one of the three lead scriptwriters) is a qualifying person;
(c) 1 point if the composer (or, if there is more than one, the lead composer) is a qualifying person;
(d) 1 point if the artist (or, if there is more than one, the lead artist) is a qualifying person;
(e) 1 point if the programmer (or, if there is more than one, the lead programmer) is a qualifying person;
(f) 1 point if the designer (or, if there is more than one, the lead designer) is a qualifying person;
(g) 1 point if at least one of the heads of department is a qualifying person;
(h) 1 point if at least 50% of the development team are qualifying persons.

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11 Comments

  1. Eregol

    Well, 1 step forward, 2 steps back. Flaming idiots.

    #1 2 years ago
  2. ZeGerman1942

    I actually think these are some great rules. With quite a few points available, it should be easy enough to get 16 points and qualify. Companies want tax credits, then having some standards in order to get them is fair enough i think. Otherwise large companies could set up a small studio in the UK, list it as the head office and develop everything in cheaper countries. These guidelines can help revive the UK games development sector.

    The points from production alone should be easy to achieve. and don’t forget that the EEA has over 30 members i think, so characters, story, setting can be very varied.

    Even thinking Modern Warfare 3 for example, you got some british main characters, some of the levels are set in the the UK/EEA etc. so even that title would right off the bat get a handful of points. If it was developed in the UK then it would easily reach 16 i’d think.

    #2 2 years ago
  3. freedoms_stain

    AHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

    *pause for breath*

    HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

    Imagine Canada used the same set of retarded rules. Mass Effect would be really fucking different eh? What with at least 25% of the game taking place In Canada and all the main characters being super obviously Canadian. “Sorry there Mr Geth”.

    #3 2 years ago
  4. ZeGerman1942

    @3 that’s 4 points for setting.

    If you use Canadian voice actors etc., a canadian development team make the main characters canadian (or North American to be equivalent to the UK AND EEA rule) then you could still fullfil the 16 point requirement to get tax relief. Shepard, Anderson, Hacket, Joker, Chakwa(sp) and many other main characters already are (or could be) north american.

    Also at least for ME3, part of the setting could have been in canada or north america (instead of london) and you get a point from that too.

    Obviously there are restrictions but is that necessarily worse than handing out tax money for free – how long is that feasible?

    #4 2 years ago
  5. freedoms_stain

    @4, we’re talking about a country that allows billions in corporate tax avoidance, giving the video games industry a leg up is a drop in that ocean.

    The point of offering a particular industry a tax rebate is that in the long run it will generate more revenue than what was given up in the rebate anyway. So potentially it’s not only feasible, it’s profitable.

    Now tying a bunch of retarded ‘British’ rules to the program that have the potential to put a heavy limit on the mass appeal of your games, that’s not very feasible.

    Under these rules a game in a fantasy setting could not qualify for this tax scheme even if it was a 100% British production. That’s dumb. Mass Effect could not qualify if the Canadians used these rules.

    #5 2 years ago
  6. ZeGerman1942

    @5 do the math on the rules.

    If the entire production team is british or an EEA state member, if the game is done in the english language (which is pretty much a default anyway) and if it is produced in the UK then you already have 15 points. You need 1 point from the rest – make your main character(s) british or from an EEA member state and you are done.

    That way you can make a fantasy game or sci fi game or any game and still get the tax advantage.

    Honestly comparing Canada and the UK is quite hard to do. When the canadian tax breaks were set up the entire world economy was different, it was done to revive certain regions (not all regions in canada have tax benefits). If you believe some reports over the years, these regions, while seeing short term increase in business and a revived community, have not figured out the long term effect yet – some of the companies are registered outside of canada, so not all earnings are taxed in canada (i.e. your “it flows back in” argument is not always valid).

    Setting tax breaks up in the UK now, after a recession and in a country that has a lot more issues to deal with, is not as easy i would say. The government has to justify giving an industry any kind of tax break and that’s what these rules are for – and i for one think they are ok, and not too binding. And it’s better to get some tax breaks than none at all no?

    #6 2 years ago
  7. freedoms_stain

    @7, if you set your game in a Fantasy world then you can’t set it in the UK or have British characters. You cannot make up that point.

    #7 2 years ago
  8. fps_d0minat0r

    Lol so now developers have to play this game before they actually start making their game?
    if the developers made a game that met the points criteria, they would probably lose more money than they can gain from not paying tax.
    they might as well pay the tax and tell the government… ‘sorry, theres better places to set games in than the UK and development should be multi-cultural.’

    wont be surprised if more UK developers close and move to places where the company pays less tax, the staff pay less tax and their creativity is not limited by some bullshit points system to save some tax.

    …so much for tax doesnt have to be taxing.

    #8 2 years ago
  9. Cobra951

    Uh oh . . . So much for that.

    #9 2 years ago
  10. DSB

    Wow, talk about idiot politicians.

    Looks like they aren’t that hungry for high tech jobs. Oh well, the internet is just a fad.

    And what on earth does the british public get out of those requirements, except a pointless, petty little fix of nationalism?

    Pip pip cheerio, lads.

    #10 2 years ago
  11. Digital Bamboo

    This is so…sad? funny? strange? I don’t even know, it kind of hurt my brain a little bit to read that much bullshit.

    This point system is truly incredible. So, under this system, a game based on, say, Jack the Ripper murdering prostitutes, would be awarded full points, whereas a game like Valkyria Chronicles–with it’s anti-war messages–wouldn’t make the cut, because it clearly takes place in a fictional world, nothing like Europe at all. Genius.

    #11 2 years ago

Comments are now closed on this article.

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    Assassin’s Creed fans, don’t try this at home. Assassin’s Creed characters can survive falls of almost any distance as long as they aim for the haystacks scattered handily throughout the environment. As you probably deduced from your familiarity with common sense, this isn’t a real thing: falling from heights kills you, the same way a […]

  • Why are people buying PS4 and not Xbox One?

    PS4 is outselling Xbox One – but why? A new report may have the answer. Last month, the PS4 outsold the Xbox One in the US again, returning it to the top of the charts after just two months away. Why? What has caused this reversal in fortunes in Microsoft’s home territory? According to a […]

  • Toejam and Earl are back with a new Kickstarter

    The early 90′s are alive and well in a new bid to bring back Toejam and Earl. Toejam and Earl released for Mega Drive (Genesis, Americans) in 1991, and the eponymous characters went on to count among Sega’s best-known characters. They appeared in a platformer, a light gun shooter and finally a 2002 Xbox game […]

  • New Wander trailer shows off Azertash form

    Wander is a collaborative, non-combat MMO in which you can take on a number of unique forms. Wander players begin as an ambulant tree called an Oren and can progress through several different bodies as they explore the environment, learning its secrets. One of these, which we’d not seen before this trailer, is the amphibious […]

  • SOMA approaching beta phase on PC and PS4

    SOMA, the new horror game from the Amnesia: The Dark Descent crew, is getting close to playable. Frictional Games has apologised for its recent silence over the project, but said it’s focused on reaching beta. Sorry all for the silence! We're closing in on Beta and everyone's working hard to get there. Once that's done, […]

  • Square Enix does not condone Final Fantasy: Mystic Quest HD Remaster

    Square Enix has said it’s not involved with a fan remake of Final Fantasy spin-off Mystic Quest. 1992 SNES game Final Fantasy: Mystic Quest is being remade by Dark Design as Mystic Quest HD Remaster. The developer is even taking pre-orders for the project. Unfortunately, it looks like it is in no position to be […]

  • New Hunger teaser released by LittleBigPlanet Vita co-developers

    LittleBigPlanet Vita co-developers Tarsier Studios have released a teaser trailer for Hunger, which was announced in May 2014 at the Nordic Game Conference. The game has been rumored to be the firm’s unannounced Sony project since 2010. Platforms are still to be announced, but the studio became a first-party SCE developer a few years back, […]

  • Here’s two Mario Party 10 overview videos, one featuring amiibo

    Overview videos for Mario Party 10 and the amiibo which work with the title have been released by Nintendo Japan. Obviously each one is in Japanese, but you get the gist all the same. Mario Party 10 releases on Wii U March 20 in North America and Europe. Thanks, AGB.

  • Clan Raids announced for Call of Duty: Advanced Warfare Companion App

    Activision has announced a new Clan Raids mode will be made available through the Call of Duty: Advanced Warfare Companion App. According to the CoD community blog, raids are time-based challenges where success earns you a spot on the Clan Raids leaderboards and new Clan Raid-exclusive in-game gear like the Equilibrium set. Clan members will […]

  • Play Battlefield Hardline starting March 12 through EA Access

    Xbox One users with an EA Access subscription will be able to play 10 hours worth of Battlefield Hardline starting March 12. EA Access members will are being granted access to the game five days before the street date, with full multiplayer and all saves transferring over into the main game. It was announced yesterday […]

  • This video summarizes the contents of Destiny patch 1.1.1

    With Destiny patch 1.1.1 now available, here’s a video summary of what to expect. In the video above, Arekkz Gaming gives you a rundown of the important bits in the update. Subscribe to Arekkz Gaming for more Destiny tips and trick through the link.

  • Destiny 1.1.1 patch notes out, update is live

    Destiny’s 1.1.1 patch arrives today, so if you have been kicked from activities, it means you will need to download the patch now that it’s live. We will be pushing the 1.1.1 patch for Destiny shortly. Players will be kicked from activities and required to download the patch. — Bungie Help (@BungieHelp) February 25, 2015 […]

  • Payday 2 packs based on Hotline Miami 2: Wrong Number coming

    Starbreeze has announced another collaboration with Dennaton Games which will see masks based on Hotline Miami 2: Wrong Number appear in Payday 2. The collaboration consists of two free updates when you acquire Hotline Miami 2 or its deluxe version on Steam from February 25. The two updates, called Hotline Miami Mask Pack and Jacket […]

  • Velocity 2X making its way onto Linux, Mac, PC and Xbox One

    Velocity 2X will be released on Linux, Mac, PC and Xbox One Futurlab has announced. The developer is in charge of the port, which will be published by Sierra. According to Futurlab, the deal with Sierra came about when self-publishing proved to be difficult due to spending “more time doing PR and marketing on Velocity […]

  • Hotline Miami 2: Wrong Number finally has a release date

    A release date for Hotline Miami 2: Wrong Number has been announced, finally. The game will arrive on Linux, Mac, PC, PlayStation 3, PS4 and Vita March 10. It is now available for pre-order on GOG, Humble and Steam for 10% off for $13.49/£10.99. There’s also a Digital Special Edition available which includes tracks from […]

  • Warhammer 40,000: Dark Nexus Arena is a twin stick shooter MOBA for PC

    Warhammer 40,000: Dark Nexus Arena has been announced as a twin stick shooter MOBA blend from Whitebox Interactive. Set for a 2016 release on PC, the game’s beta will be on show at PAX East next month. An Early Access release is slated for Q2 2015 and you can already purchase early access for a […]

  • More information, videos for cancelled Legacy of Kain: Dead Sun surface

    A trailer for the cancelled Legacy of Kain: Dead Sun title from Climax which was reportedly set for an E3 2012 reveal, has surfaced. Along with the above video is another which is described as a pre-boss battle cutscene. It’s below. According to a source of NeoGAF’s Mama Robotnik, the game was being developed under […]

  • Three additional games added to Square Enix Humble Bundle

    Kane & Lynch Collection, Lara Croft and the Guardian of Light and Startopia have been added to the Square Enix Humble Bundle. All three are made available when paying the average price of $7.69. Those who have already purchased the bundle will automatically be granted the titles. All three are available for PC only. The […]

  • Forza Horizon 2 gets Fast & Furious with standalone expansion

    A Fast & Furious tie-in and standalone expansion to Forza Horizon 2 will arrive for Xbox consoles next month. Titled Forza Horizon 2 Presents Fast & Furious, the downloadable title does not require the base game to play. “We’ve been talking with the folks at Turn 10 for a number of years and have always […]

  • The Evil Within: The Assignment has a release date, new trailer

    The Evil Within: The Assignment will be released on March 10 in North America and March 11 in Europe, it was announced today. Along with an exact release date was a trailer detailing more information about the first set of DLC. The Assignment is the first of two DLCs centering on Detective Castellanos’ mysterious partner, […]

  • Steam and GOG cross-platform multiplayer added to AvP Classic 2000

    Steam and GOG have announced Aliens vs Predator Classic 2000 owners will be able play multiplayer with each other across both platforms. With the recent online multiplayer update for for AVP Classic 2000, Rebellion CEO Jason Kingsley has made good on his promise from June to offer cross-platform play between the Steam and GOG platforms. […]

  • OlliOlli 2: Welcome to Olliwood arrives on PS4, Vita next week

    Roll7 has announced it will release OlliOlli 2: Welcome to Olliwood next week. The developer announced the dates on Twitter this morning alongside the launch trailer. You will be able to download the game for PlayStation 4 and Vita March 3 in North America and March 4 in Europe.

  • Week 7: Play GTA Online with VG247 tonight at 8pm UK time!

    Heists got a date! Come play GTA Online with us to celebrate. We’re playing GTA Online on PS4 tonight with whoever else fancies it. That means you. This week’s playlist is Happy for Heists, because we kind of are. The six jobs involved will last about 45 minutes. Anyone can turn up. Here’s how. We’ll […]

  • Batman: Arkham Knight – first look into the story

    Batman: Arkham Knight has a new trailer available that gives us a peek into Scarecrow’s plan to unite all villains against Batman. The trailer below has a different tone to the ones showing Arkham Knight. Instead, we get a look at Scarecrow’s team of super-villains including new footage of Poison Ivy and Harley Quinn. There […]

  • Vita knocks New 3DS LL out of top slot on Media Create charts

    Thanks to four new titles, one of which was God Eater 2: Rage Burst, PlayStation Vita has knocked New 3DS LL out of the top slot on the Media Create charts in Japan. The handheld, which came in thrid place last week, moved 35,203 units for the February 16-22 period, compared to 10,901 units the […]

  • Dragon Quest Heroes coming west in 2015, PS4 only

    Dragon Quest Heroes will be making its way to west this year. Square Enix has announced that it’s bringing Dragon Quest Heroes to the west this year. The press release mentioned only PAL territories (Europe & Australia). Though it’s unlikely it will miss the US. The game will release on PlayStation 4, both digitally and […]

  • Destiny: how to make sure Crota stays down for longer

    If you’re familiar with the final encounter of the Crota’s End raid, then you know every second Crota is immobilised counts. Arekkz Gaming has a handy tip for anyone who’s played Crota’s End or anyone attempting it. The trick is simple to execute and will ensure Crota stays on his knees for longer, making for […]

  • NBA Live 15 added to EA Access just four months after release

    EA has added NBA Live 15 to the list of games available instantly to anyone with an EA Access subscription. NBA Live 15 has been added to EA Access’ Vault, EA has announced. As of today, anyone with an EA Access subscription on Xbox One can play it alongside other available games. NBA Live 15 […]

  • Deal: get Advanced Warfare Limited Edition Xbox One bundle + extra game for £299

    UK retailer GAME is offering a good deal on the Advanced Warfare Limited Edition 1TB Xbox One bundle and is throwing in an extra game. The retailer has reduced the price of the bundle to £299, which is the usual price for the standalone console. The bundle is of course Advanced Warfare-themed. The console and […]

  • That Metal Gear Rising 2 logo was for the second anniversary of the original

    Metal Gear Rising developer Platinum Games has confirmed, once and for all, that the “2″ logo we saw during Sony’s presentation at Taipei Game Show was definitely not for a sequel. Platinum posted this on Twitter earlier. デザイナーの趙&ニシイから、『MGR』2周年記念イラスト! ディレクターの齋藤( @PG_saito )が、開発スタッフブログでご紹介しています↓↓ http://t.co/IW1aOxAZQR #mgr pic.twitter.com/ZbNF3Jk1tF — PlatinumGames Inc. (@platinumgames) February 25, 2015 The illustrations were made by artist Yong-Hee […]

  • Resident Evil Revelations 2 is formulaic and I’m okay with that

    There’s something comforting about the lack of ambition and plain old gameplay in Resident Evil Revelations 2, says Matt Martin. “It’s locked from the other side.” Of course it is. What did I expect? I’ve been here before. So many times. Not just in Resident Evil but a million other games. It’s so familiar as […]

  • Battlefield 4: double XP event live now through Sunday

    EA is holding a double XP event in Battlefield 4 on all platforms. The publisher is celebrating Battlefield Hardline going gold by offering all Battlefield 4 players double XP in multiplayer matches. The double XP event is now live and through 23:59 UTC on Sunday, March 1.

  • BioShock Infinite, Tomb Raider, Rayman Legends free with March Games with Gold

    The list of free games coming in March as part of Microsoft’s Games with Gold programme has leaked. The leaked list of games include Rayman Legends and #IDARB for Xbox One along with Tomb Raider and BioShock Infinite for Xbox 360. In addition, Microsoft will be offering double the amount of games in April. The […]

  • Telltale’s new IP will be a “super show”, bridges the gap between TV and game

    Telltale’s upcoming mysterious new IP will be produced in collaboration with Lionsgate and will be a hybrid game and TV show. Entertainment Weekly spoke to Telltale CEO Kevin Bruner to understand what’s a super show. “A “Super Show” episode combines one part of interactive playable content with one part of scripted television style content,” said […]

  • Next Mortal Kombat X stream to show Brutalities, new character

    Brutalities will be making a return in Mortal Kombat X and we’re getting a look at them very soon. The next Mortal Kombat X live-stream has been dated and we know it will show Brutalities for the first time. Developer NetherRealm Studios posted this on Twitter. pic.twitter.com/ZJYN1FNRZ9 — NetherRealm Studios (@NetherRealm) February 23, 2015 Notice […]