MGETR70010 - Museums and Galleries Exhibition Tax Relief: calculation: introduction
Museums and Galleries Exhibition Tax Relief (MGETR) is only available to Museums and Galleries Exhibition Production Companies (MGEPCs) that undertake qualifying exhibitions.
A company meeting the definition of an MGEPC is entitled to claim MGETR on European core expenditure on an exhibition provided:
- the exhibition is a curated public display
- the exhibition is a qualifying exhibition and
- not less than 25% of the total core expenditure is European expenditure
Benefits of MGETR: additional deduction and tax credit
A company entitled to MGETR can claim an additional deduction in computing its taxable profits relating to a separate exhibition trade. .
The additional deduction can:
- reduce the taxable profits of the separate exhibition trade (so that the company pays less tax), or
- create or increase a tax loss, which the company can surrender in return for a payable Museums and Galleries Exhibition Tax Credit (MGETC).
MGETR only available to certain companies
MGETR is not available to individuals, either alone or within partnerships, or to investors, financial institutions and those whose involvement in exhibition production is confined to providing or arranging finance.
The purpose of targeting the relief exclusively at MGECs is to ensure that Government support is delivered directly to exhibition production and is not used as a means of avoiding tax. It also ensures that such support is delivered to production activity in its entirety.
The relief is targeted at companies which are either
- a charitable company which maintains a museum or gallery or
- a company wholly owned by a charity which maintains a museum or gallery or
- a company wholly owned by a local authority which maintains a museum or gallery
Core expenditure before 1 April 2017
MGETR was introduced from 1 April 2017 and only expenditure incurred after this date is eligible for an additional deduction.