DON’T LET THE SUN GO DOWN ON MUSEUMS AND GALLERIES EXHIBITION TAX RELIEF


10 July '23

2 minute read

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Creative tax reliefs have provided vital support over recent years to companies in the sector. Museums and Galleries Exhibitions Tax Relief (MGETR) is one such relief available to qualifying museums, galleries and heritage institutions that are directly involved in the production of new exhibitions. The good news is that MGETR has been extended for two years until 31st March 2026.

This extension follows a number of changes announced in the Spring budget. It’ll deliver more financial support for longer to companies claiming the reliefs, resulting in certainty for a little longer. Something which is often missing for those organisations in the creative sector.

When it was introduced as part of the Finance Act 2017, MGTER included a sunset clause which meant the relief would expire in April 2022. The UK government decided that this sector needed continued help having been particularly badly affected by the COVID-19 pandemic so decided to extended the tax relief scheme for a further two years. This was confirmed in updates to the Finance Act 2022, which stated that the relief will continue to be available until 31st March 2024.

See below a summary of the rates of relief available to qualifying companies:

TABLE 1: BREAKDOWN OF THE CREATIVE TAX CREDIT RATES OVER TIME

Pre-27th October 2021 27th October 2021 to 31st March 2025 1st April 2025 to 31st March 2026
Touring Exhibitions 25% 50% 35%
Non-touring Exhibitions 20% 45% 30%

This positive impact on the estimated 1500 museum and gallery companies, that often have charitable status, is that these companies will be able to continue to deliver high-quality exhibitions for the public’s benefit. Resulting in increased revenues via ticket and merchandise sales.

HOW DOES THE BENEFIT WORK?

You can claim an additional deduction to reduce your profits or increase a loss. This deduction is the lower of 80% of the total core costs or the amount of UK core costs. If you make a loss, it can be surrendered for the payable credits highlighted above.

If you want to know more about what the changes in the relief rate will mean for your claim get in touch. And if you want to know more about how the CP Innovation team can support your company take a look here.