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HMRC internal manual

Museums and Galleries Exhibition Tax Relief

Museums and Galleries Exhibition Tax Relief: Taxation: Profit/loss calculation: Income - Nature

S1218ZBB Corporation Tax Act 2009 (CTA 2009)

Where the profits or losses of a separate exhibition trade of a Museums and Galleries Exhibition Production Company (MGEPC) are within the rules in Part 15E CTA 2009, the income to be brought into account is all receipts in connection with making and exploiting the exhibition.

This means all the money received from the exhibition in the widest sense, including but not limited to:

  • royalties or other payments for the rights to use the production, or aspects of it (for example, a fee paid by a secondary production company to a primary production company)
  • payments for merchandise such as programmes

Tax credits due or paid to the MGEPC in connection with a production are not regarded as income from the relevant production.

   Loans and grants

Receipts such as grants may be income where they are unconditional contributions to the costs of the exhibition. Loans are not trade receipts and, as with any other trade, they are not counted as income of a separate exhibition trade. 

Restricted versus Unrestricted Income

Where a charity receives income with restrictions in respect of a particular exhibition then this should be brought into account as income for the purposes of the separate exhibition trade.