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HMRC internal manual

Museums and Galleries Exhibition Tax Relief

Museums and Galleries Exhibition Tax Relief; calculation; surrenderable losses and tax credit

S1218ZCH, S1218ZCJ and S1218ZCK Corporation Tax Act 2009 (CTA 2009)

A Museums and Galleries Exhibition Production Company (MGEPC) has the option of claiming Museums and Galleries Exhibition Tax Relief (MGETR) in the form of a Museums and Galleries Exhibition Tax Credit (MGETC) paid directly by HMRC.  It can do so in any period in which it has a surrenderable loss.

The MGEPC may surrender all or part of its surrenderable loss.

The amount of the surrenderable loss

The amount of the surrenderable loss for a MGEPC, for an accounting period, is the lesser of:

  • the amount of the available loss of the separate exhibition trade for the accounting period, and
  • the available qualifying expenditure for that period.

 

The company’s available loss is the sum of the loss for the period, plus any relevant unused loss brought forward.

The relevant unused loss brought forward is any available loss for previous periods that has not been set against profits of the separate exhibition trade, nor surrendered for MGETC.

The available qualifying expenditure is the enhanceable expenditure to date less the total amount previously surrendered.

The amount of Museums and Galleries Exhibition Tax Credit

The amount of the payment is the MGETC rate multiplied by the amount of loss surrendered.

The MGETC rate is 20% for non-touring exhibitions or 25% for touring exhibitions.

The amount of the payment is capped to a maximum per exhibition:

  • £80,000 for a non-touring exhibition
  • £100,000 for a touring exhibition