Legal Update - Cultural Test for Video Games

Commercial Law – Video Games – Corporation Tax – Tax Relief – “Cultural Test”

 

On 19 August 2014, the Cultural Test (Video Games) Regulations (“Regulations”) came into force.

 

The Regulations introduced the “cultural test”, which enables video game development companies to apply for their games to be classified as British video games. The cultural test is a points-based test, with points being awarded for the following: cultural content; cultural contribution; cultural hubs (that a certain amount of the development, storyboarding, programming, design, audio production or music recording for the game occurs in the UK); and cultural personnel.

 

A minimum of 16 points is required for a game to pass the test, allowing a video game development company to apply for the game to be classified as a British video game. The classification of a game as a British video game is a condition of eligibility for claiming video games tax relief.

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For any queries in relation to the cultural test for video games and any other issues such as intellectual property matters, you may contact us by email [email protected]. Visit http://www.rtcoopers.com/practice_corporatecommercial.php or http://www.rtcoopers.com/practice_intellectualproperty.php.    

 

© RT COOPERS, 2014. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.