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HMRC internal manual

Museums and Galleries Exhibition Tax Relief

Museums and Galleries Exhibition Tax Relief; losses; transfer of trade

S940B – S953 Corporation Tax Act 2010 (CTA 2010)

The rules on transfers of trades in CTA 2010 do not apply to transfers of separate exhibition trades between companies in common ownership.

The legislation in CTA 2010 prevents the separate exhibition trade from being treated as permanently discontinued in the hands of the first company and a new exhibition trade starting in the hands of the second company.  Instead, the second company is treated as succeeding to the exhibition trade of the first company.

The Museums and Galleries Exhibition tax regime permits only one company to be the Museums and Galleries Exhibition Production Company (MGEPC) in relation to an exhibition and treats the activities of that company in relation to each exhibition as a separate exhibition trade.

As a result, once a separate exhibition trade has commenced it is impossible for a second company to succeed to the trade in relation to the exhibition.  The rules in CTA 2010 do not apply.

Where a MGEPC carries on a separate exhibition trade in relation to a qualifying exhibition and that trade ceases, it may be able to pass any losses on to:

  • another separate exhibition trade in relation to a qualifying exhibition that it is carrying on at the time of the cessation, or
  • to another separate exhibition trade in relation to a qualifying exhibition that another group company is carrying on at the time of the cessation.

See MGETR40050 for details.