Creative reliefs sit beside R&D, not instead of it.

The Audio-Visual Expenditure Credit, known as AVEC, and the Video Games Expenditure Credit, known as VGEC, are Corporation Tax credits for qualifying creative companies. HMRC's guidance says they give a taxable credit based on allowable expenditure, which pays off Corporation Tax and can be set against other tax liabilities, with any remainder paid to the company. They replace the older creative tax reliefs over time.

The government's July 2023 policy paper set the rates at 34% for film, high-end television and video games, and 39% for animation and children's television. The credit is taxable, so the benefit after Corporation Tax is lower than the headline figure. Check HMRC's current guidance before relying on a figure, because rates can change at a Budget.

The government's policy paper says the expenditure credits were available to claim from 1 January 2024. New productions have to claim under them from 1 April 2025, and all productions must claim under the expenditure credits from 1 April 2027, when the current tax reliefs end. The transition dates depend on when a production started, so we ask about timelines early.

HMRC's creative industry page lists eight tax reliefs: film, animation, high-end television, children's television, video games, theatre, orchestra, and museums and galleries exhibition. It also lists the two expenditure credits, AVEC and VGEC. We specialise in R&D tax relief rather than these regimes, so we point you to the right adviser for them.

There is no single answer, because the two reliefs reward different things. R&D relief depends on solving scientific or technological uncertainty, while VGEC depends on the allowable expenditure of a qualifying games company. We specialise in R&D tax relief, so we check how a games claim interacts with an R&D claim and point you to a creative-sector adviser for the VGEC side.

Some do, but not because a game is new. HMRC's guidelines require an advance in science or technology, achieved by resolving scientific or technological uncertainty that a competent professional could not readily resolve. Routine development, art and design do not count by themselves. Technical work on engines, tools or novel techniques is where claims tend to be considered.

HMRC's creative reliefs page says the CT600P supplementary page must be included when making a claim, with that wording added in February 2026. Earlier in 2025 the page noted a removal of that requirement for April 2025. Because guidance has moved, we recommend checking the current page or asking your adviser before filing.

HMRC says that for the older reliefs a company that makes a loss may surrender it for a payable tax credit, and that the expenditure credits pay off Corporation Tax, can be set against other liabilities, and any remainder is paid. The detail depends on which regime applies and on your accounts. We coordinate with your advisers where appropriate.

The government's policy paper describes AVEC and VGEC as similar to the R&D expenditure credit, and HMRC says the credits are taxable. The merged R&D scheme also gives a taxable 20% credit. Because both are taxable, the notional tax mechanics matter to the net benefit, and we look at how that works for your company.

Bring a list of productions or games, the stage each is at, start and delivery dates, and costs to date. Add details of the technical challenges your developers faced. We use these to look at the R&D side of the business and to flag where an adviser on the creative credits should be involved.