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HMRC internal manual

Museums and Galleries Exhibition Tax Relief

Museums and Galleries Exhibition Tax Relief; calculation; maximum amount of core expenditure subject to claim

S1218ZCF Corporation Tax Act 2009

The amount of Museums and Galleries Exhibition Tax Relief (MGETR) available is based on the EEA core expenditure of each separate exhibition trade.  The Museums and Galleries Exhibition Production Company (MGEPC) will receive an additional deduction of up to 80% of the total core expenditure incurred on the production of the exhibition.

A MGEPC can claim MGETR on the lower of:

  • 80% of total core expenditure, and
  • the actual EEA core expenditure incurred.

 

EEA core expenditure is the amount of core expenditure incurred by the MGEPC which is also EEA expenditure. EEA expenditure is expenditure on goods or services that are provided from within the EEA. See MGETR60050 for more detail.

If non-EEA core expenditure is not more than 20% of total core expenditure it will have no bearing on the amount of MGETR an MGEPC can claim, subject to the overall restriction per exhibition.

The amount on which the MGEPC is entitled to claim an additional deduction under MGETR is termed enhanceable expenditure.

Example 1: core expenditure all EEA

A MGEPC incurs £100,000 of core expenditure on an exhibition, all of it on goods or services that are provided from within the EEA.

Actual EEA core expenditure more than 80% of total core expenditure.

The OPC can claim OTR on 80% x total core expenditure.  The additional deduction is therefore £80,000.

Example 2: core expenditure part EEA and part non-EEA

A MGEPC incurs £200,000 of core expenditure on an exhibition, of which £125,000 is EEA expenditure.  The remainder is incurred on goods or services that are provided from within the USA and is therefore non-EEA expenditure.

Actual EEA core expenditure less than 80% of total core expenditure.

The MGEPC can claim MGETR on actual EEA core expenditure.  The additional deduction is therefore £125,000.