A UK tax policy intended to boost the domestic video games industry has been used by some of the world's largest entertainment companies to avoid paying tens of millions of pounds in corporation tax, a Guardian investigation has found.
WarnerMedia, which owns the British game development companies that make the Lego and Batman: Arkham series, has claimed up to £60m in corporation tax relief, according to company filings.
Sony, the owner of PlayStation, claimed almost £30m. Japanese multinational Sega claimed up to £20m, according to audits of its UK subsidiaries that make the strategy-based Total War games and the hit sports series Football Manager.
Video Games Tax Relief (VGTR), which enables game developers to claim back up to 20% of certain production costs, was introduced in 2014 after years of lobbying by the industry.
WarnerMedia, owner of British developers Traveller's Tales and Rocksteady Studios, declined to comment, as did Sega, which owns Sports Interactive and the Creative Assembly. Sony did not respond to requests for comment.
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WarnerMedia, which owns the British game development companies that make the Lego and Batman: Arkham series, has claimed up to £60m in corporation tax relief, according to company filings.
Sony, the owner of PlayStation, claimed almost £30m. Japanese multinational Sega claimed up to £20m, according to audits of its UK subsidiaries that make the strategy-based Total War games and the hit sports series Football Manager.
Video Games Tax Relief (VGTR), which enables game developers to claim back up to 20% of certain production costs, was introduced in 2014 after years of lobbying by the industry.
WarnerMedia, owner of British developers Traveller's Tales and Rocksteady Studios, declined to comment, as did Sega, which owns Sports Interactive and the Creative Assembly. Sony did not respond to requests for comment.
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