MGETR30110 - Museums and Galleries Exhibition Tax Relief: Taxation: Cessation

S1218ZAC - ZAD Corporation Tax Act 2009 (CTA 2009)

Where a company is a Museums and Galleries Exhibition Production Company (MGEPC) for the purposes of Part 15E CTA 2009, a qualifying exhibition is treated as a separate exhibition trade if Museums and Galleries Exhibition Tax Relief (MGETR) is claimed in respect of that concert or series.  This isolates each exhibition on an individual basis for the purposes of calculating profits and losses.

The point at which this trade starts is determined by special rules (MGETR30100), but, once set up, the normal rules apply for when a trade ceases, unless the company ceases at any time to be a MGEPC in relation to the production.

S1218ZB Cessation rules

The rules apply differently whether the company is a primary or secondary production company.

A primary production company is deemed to have ceased the separate exhibition trade when the exhibition closes at the last venue at which it is to be held.

A secondary production company is deemed to have ceased the separate exhibition trade where the exhibition closes at the last venue for which that company is the secondary production company.

The question of when either of those events occurs is a matter of fact. 

S1218ZDC Terminal losses

If a separate exhibition trade ceases, the company may be able to use losses arising in the separate trade by using the special terminal loss rule (MGETR40050).