Video games tax credit - EU Commission report

The EU Commission report into the UK's proposed video games relief has been published and can be accessed here.It's not particularly happy reading, and in summary the EU Commission "doubts" that:(a)  The EU Commission report into the UK's proposed video games relief has been published and can be accessed here.

It's not particularly happy reading, and in summary the EU Commission "doubts" that:

(a)  the aid is necessary;

(b)  the "used or consumed" territorial requirement is permissible outside the specific context of the Cinema Communication (which applies only to audiovisual content);

(c)  the cultural test is sufficiently restrictive.

The EU Commission is also concerned that the relief could be the start of an EU subsidy race, causing all EU territories to compete to offer the best subsidies.

We know that HMRC are on the case to respond to all the EU Commission's points.  It's a question of "watch this space" for the time being.