MGETR70020 - 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 European 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 European core expenditure incurred.
European core expenditure is the amount of core expenditure incurred by the MGEPC which is also European expenditure. European expenditure is expenditure on goods or services that are provided from within the UK or EEA. See MGETR60050 for more detail.
If non-European core expenditure is not more than 20% of total core expenditure then 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 European
A MGEPC incurs £100,000 of core expenditure on an exhibition, all of it on goods or services that are provided from within the UK or EEA.
Actual European 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 European and part non-European
A MGEPC incurs £200,000 of core expenditure on an exhibition, of which £125,000 is European expenditure. The remainder is incurred on goods or services that are provided from within the USA and is therefore non-European expenditure.
Actual European core expenditure less than 80% of total core expenditure.
The MGEPC can claim MGETR on actual European core expenditure. The additional deduction is therefore £125,000.