In a fresh wave of scrutiny hitting one of gaming’s biggest players, Rockstar Games’ latest UK company accounts have thrust the studio into the spotlight — not for its blockbuster titles, but for its aggressive use of government tax incentives. The fan-site RockstarINTEL broke down the numbers on February 18, 2026, under the headline “Rockstar Games Financials Revealed: ‘Grand Theft Tax’ Scandal Sparks Urgent Demands,” reigniting debates about corporate welfare, worker rights, and the true cost of keeping GTA and Red Dead in the UK.
The Numbers Don’t Lie — Or Do They?
According to Rockstar Games UK Ltd’s accounts for the financial year ending March 31, 2025 (filed earlier this month and publicly available via Companies House):
Turnover: £508 million — the fourth consecutive year above the half-billion-pound mark.
Pre-tax profits: More than £87 million (second-highest on record).
Dividends paid out: £85 million.
Video Games Tax Relief (VGTR) claimed: Over £70 million (precisely £70.7m plus £7m in HMRC interest for late payments).
Additional R&D tax credits: £1.9 million.
Zoom out, and the picture gets even bigger. Since the VGTR scheme launched in April 2014, Rockstar has pocketed a staggering £504 million in total relief — money intended to support “culturally British” game development. Over the past decade, the UK subsidiary has reported cumulative profits exceeding £600–604 million and paid out more than £400 million in dividends.
The accounts note that much of the revenue comes from “provision of research and development functions” to parent company Take-Two Interactive in New York. Notably, no major new title has launched since 2018 (Red Dead Redemption 2), yet the company continues to claim relief on ongoing work — widely understood to include GTA VI.
“Grand Theft Tax”: How a Political Soundbite Was Born
The phrase “Grand Theft Tax” was coined by Tracy Gilbert, Labour MP for Edinburgh North and Leith, during a December 2025 parliamentary session. Gilbert, whose constituency includes Rockstar North’s Edinburgh studio, highlighted the £70m+ relief at a time when the company faced allegations of dismissing around 30–40 Scottish staff amid union-organizing efforts.
The Independent Workers’ Union of Great Britain (IWGB), which has been supporting the affected workers, has joined the fray, calling for a full review of the VGTR program. Tax Watch UK and outlets like The Scotsman have amplified the criticism, pointing out that large multinationals appear to be the biggest beneficiaries of a scheme originally designed to help smaller, independent developers.
Critics argue it’s galling to see a profitable giant — whose co-founders Sam and Dan Houser sit on the UK Rich List with a combined net worth reportedly over £400 million as of early 2025 — receive hundreds of millions in public support while paying out huge dividends and facing labor disputes.
Rockstar Fires Back
Rockstar has pushed back firmly. In a statement quoted by RockstarINTEL and earlier Scottish media:
“Since the introduction of VGTR in 2014, Rockstar has invested enormously in the UK, creating more than a thousand jobs in the creative sector across Scotland and England. Rockstar’s commitment to local investment has helped put the UK at the cutting edge of entertainment globally and contributed significantly to UK economic growth, skills and innovation.”
The company categorically denies any union-busting and maintains all actions comply with UK law. It also stresses that the royalties flowing through Take-Two (historically $2.5 billion between 2014–2019, much of it from GTA V) ultimately reward the creative talent behind the games.
What Happens Next?
The controversy has already prompted ministerial interest and calls for reform or tighter auditing of the VGTR scheme (which is set to be phased out and replaced by a new Video Games Expenditure Credit in coming years). Unions want clearer conditions tying tax relief to fair labor practices. Politicians are asking whether profitable studios with no recent releases should continue receiving such generous support.
For gamers, the stakes are high: GTA VI is still the most anticipated title of the decade, and Rockstar’s UK studios (Edinburgh, Dundee, Leeds, Lincoln, and London) remain central to its development. Supporters of the scheme argue that without these incentives, major projects could drift overseas, costing British jobs and tax revenue in the long run.
Whether this is genuine “scandal” or just political theater remains hotly debated. But one thing is clear: the days of unchecked, headline-grabbing tax relief for the games industry’s biggest names may be numbered.
What do you think — should governments keep subsidizing billion-dollar franchises, or is it time to tighten the rules? Drop your take in the comments. In the meantime, we’ll be watching Companies House, Parliament, and Rockstar’s next moves closely.
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