Price Bailey support Casual Brothers to successfully claim VGTR

Casual Brothers was referred to Price Bailey following discussion with another accountant, who identified that specialist sector support would add value at this stage of the studio’s growth.

Casual Brothers is a gaming studio that, historically, has worked with publishers to develop games or elements of games on their behalf. This has included providing technical support, platform porting (moving games from one console to another), and contributing to parts of wider projects.

More recently, the company began developing and publishing its own intellectual property for the first time. This included two self-developed video games:

Hot Rod Mayhem, which has now been released and is available to purchase.
A second, unannounced title that remains in development, with launch timing to be confirmed.

The principal aim of Casual Brothers was to apply for Video Games Tax Relief (VGTR), but as with many growing video game studios, this transition raised practical questions around how to approach qualification, cost identification and the cultural test process.

With significant development activity underway, it was important to ensure that any claim was prepared accurately, aligned with the relevant legalisation and supported by the right evidence.

The challenge

Both games were still in their development phase and had not yet reached the point of generating revenue, which is typical for internally developed titles prior to release. One of the quirks to video gaming trades is that the losses must be ring-fenced and cannot be offset against other trading profits for the company until such time as the game is released or abandoned. The impact of these rules therefore had to be navigated alongside the claim for VGTR.

Our approach

From the outset, our focus was on understanding Casual Brother’s goals, its games and development process in detail. Our work included:

Identifying qualifying games

We assessed and streamed costs between the two separate video game trades and the company’s wider non-VGTR activities and ensured that losses were restricted appropriately to reflect the requirement that each game was treated as a separate trade.

As these were the first games Casual Brothers had fully self-developed for its own benefit, they required careful analysis under the legislation. This included detailed reviews of scripts, budgets, creative materials – and, in true BFI style, playing the games ourselves to verify settings, characters, and content.

Assessing qualifying expenditure

We reviewed development activity in detail to determine which costs were directly attributable to the production of the qualifying games and eligible for relief.

Cultural test and BFI certification

We also worked directly with the BFI on Casual Brothers’ behalf, relying on our existing relationship with the BFI to discuss timescales and obtain comfort at an early stage that the games would meet the cultural test requirements.

This ensured that eligibility was addressed before progressing into more granular claim detail.

From here, we supported Casual Brothers through the BFI cultural test process, gathering and reviewing all required information.

We advised on which elements qualified and prepared applications for the relevant interim or final certificates.

Audit support under new BFI requirements

Following changes effective from 1 July 2025, certain BFI applications require an accompanying audit report where the cultural test thresholds are not met under sections A and B alone.

We carried out an audit of section D of the cultural test and issued an audit report as part of the certification process.

Price Bailey was among the first firms in the UK to sign off this type of audit report, ensuring the application met the new requirements.

Tax return and VGTR claim

We first completed and submitted the Additional Information Form, setting out core and non-core costs, project timelines, BFI certification details and background information on the company.

We then prepared the VGTR claim and uploaded the Corporation Tax return previously prepared by Casual Brothers’ advisers onto our software to enable submission.

An accompanying tax report was also submitted in support of the claim, providing further detail on the business and the methodology used to determine which costs qualified and which did not.

The outcome

Casual Brothers has successfully claimed VGTR, unlocking funding that will be reinvested into future development and growth. Now that Hot Rod Mayhem has been released, the losses generated on the game can be offset against the company’s profits in subsequent accounting periods, allowing the tax benefit of those losses to be realised going forward.

Just as importantly, the studio now has confidence that its claim has been prepared correctly, with appropriate specialist input and audit support, significantly reducing the risk of any future HMRC challenge.

We continue to support Casual Brothers with:

VGTR/VGEC claims for existing and future games.
Ongoing advice as the second, unannounced title progresses towards release.
Support under the VGEC rules for the next phase of development

Why does this matter?

This case highlights how specialist tax reliefs such as VGTR often become relevant as video games studios grow and take on more complex development activity. The legislation is detailed and highly specific, which is why targeted expertise can make a significant difference in identifying opportunities and preparing robust claims.

By involving dedicated video games specialists, that have a wealth of knowledge and expertise to support a VGTR claim, Casual Brothers was able to access the relief it was entitled to, while ensuring full compliance with both HMRC and BFI requirements.

Working with a team that understands both the technical and commercial realities of game development was crucial, especially when dealing with multiple projects and certifications.

We valued how approachable and knowledgeable the team were throughout the process. Complex VGTR topics were explained clearly, and communication was proactive and pragmatic, which made the whole process much easier to manage internally.

The support gave us confidence that our VGTR claims were structured correctly and in line with HMRC expectations. It also allowed us to plan cashflow and future development with much more certainty, knowing that the tax credit side was being handled robustly.

The support Price Bailey gave us felt hands-on and tailored to our studio, rather than a generic one-size-fits-all approach.

Hernan Castillo, CTO, Casual Brothers

We were delighted that Casual Brothers approached us. The key to this engagement was investing time at the outset to fully understand how the studio operates and how its development activity translated into a robust VGTR claim. This is a great example of why specialist advice is essential in this area and how the right expertise can unlock significant value while managing risk.

Parry Jackson, Business team Partner & Head of Gaming, Price Bailey

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.