Revealed: the cultural test UK games must pass to qualify for tax relief

Revealed: the games tax relief cultural test

The UK government has today published draft legislation outlining tax relief for the nation’s videogame companies, and revealed for the first time the cultural test that games must pass in order to qualify for the 25 per cent tax break announced last week – and it looks pretty straightforward.

Games must score at least 16 points on the test, with four points available to any game of which at least 75 per cent is set in theUKor another European Economic Area (EEA) state. Those featuring a significant number of characters from theUKor EEA will be similarly recognised.

Four points are up for grabs if at least 75 per cent of a game’s dialogue is in English – something most American games would qualify for too, of course – and up to three points are also available if the game is developed in theUK. Even the nationality of senior staff – from project leads to scriptwriters and composers – can earn points towards the total.

For the full test, via Develop, see below – and let us know what you think in the comments.

(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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