Rockstar North has reportedly claimed £504 million in UK video game tax relief since 2014, even as the studio has remained strongly profitable in recent years.

It is not the first time Rockstar Games has landed in the UK political spotlight. After layoffs and union-related disputes, attention has now shifted to money and public support. In both Scotland and London, lawmakers are questioning how the company has received a reported £504 million in public funds since 2014 through the Video Games Tax Relief (VGTR) scheme while continuing to post substantial profits.

Grand Theft Tax – the VGTR Row Escalates

Video Games Tax Relief allows eligible studios to reclaim up to 20 percent of qualifying development costs. In the 2024-2025 financial year, Rockstar reportedly received more than £70 million from the scheme while reporting £87 million in profit and £508 million in revenue. Critics argue the issue is not a single figure but the broader picture: in the same year the company benefited from tens of millions in public support, it also paid £85 million in dividends to shareholders.

Tracy Gilbert, the MP for Edinburgh North and Leith, has given the controversy a headline-ready label in Parliament: Grand Theft Tax. She argues the VGTR should be reviewed so that companies receiving public money genuinely respect workers’ rights. The debate is closely tied to the Rockstar North layoffs, which also reignited questions around union organising.

The IWGB union has argued that Rockstar accounted for close to a quarter of the annual support pot in a single year, while smaller UK studios would rely on those funds to survive. Rockstar has responded by stressing that it has created more than a thousand jobs in the UK since the scheme’s introduction and denies that the dismissals were linked to union activity. The company has said those affected were dismissed over the leaking of confidential information.

The story is also politically awkward because of where dividends ultimately go. A significant share of Take-Two’s stock is held by funds such as Vanguard and BlackRock, and Saudi Arabia’s state investment fund also holds a stake. That means UK public money can flow from Scotland to the United States and then on to global investors, a difficult sell in a climate already shaped by layoffs and labour disputes.

The controversy has already reached the level of national leadership, and while legal processes are also in motion, the political pressure has not eased. Rockstar denies wrongdoing, while unions and critics are pushing for further action.

Source: 3DJuegos