Museums & Galleries Exhibition Tax Relief

If you’ve found yourself here, you’re probably looking to learn more about Museums and Galleries Exhibition Tax Relief (MGETR). After all, you could be eligible to claim a tax rebate for your new exhibition!

Read on to learn more about this fantastic UK government incentive, what you could be eligible for, and how you can claim Museums and Galleries Exhibition Tax Relief.

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What is Museums and Galleries Exhibition Tax Relief?

Museums and Galleries Exhibition Tax Relief is a tax credit incentive the UK government offers. 

MGETR is designed to provide financial support to museums and galleries that want to create new exhibitions. The incentive covers both temporary and permanent exhibitions. 

While drumming up cultural interest plays a big role in tax relief incentives, no cultural tests are required for museum or gallery exhibition locations to receive certification for MGETR.

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How Much MGETR can I claim?

The amount of tax credit you can claim is dependent on several factors and the below qualifying expenditure. 

Exhibitions in a permanent location can reclaim a maximum of 20% of production costs. No more than £80,000 will be repaid for an exhibition housed in a permanent location.

If the exhibition is to be toured, then a higher percentage can be claimed for tax relief. The cap is 25% in the case of exhibitions that are taken on the road. For touring exhibitions, it is not possible to reclaim more than £100,000.

In both cases, you can claim an additional deduction on either 80% of your core costs or all your goods and services expenditures received from the European Economic Area (EEA). This will reduce the amount of Corporation Tax you need to pay when you file your company tax return. The lower amount will be the additional deduction you can claim the Museums and Galleries Exhibition Tax Credit on.

How to Qualify for Museums and Galleries Exhibition Tax Relief

The following four factors have to be fulfilled to be granted payable tax credit.

1. Company Background: The company applying for MGETR must either be an officially recognised charitable company or a local authority. Alternatively, the actively engaged owner of the company can be a charity or local authority. 
2. Culture: You will need to justify that the exhibition provides interest to the general public in relation to culture, artistic contribution, science, art, or history. 
3. Visitors: The exhibition needs to be open to the general public. This has to be the intention from the planning stage. No restrictions on entry are allowed i.e. admission fee restrictions.
4. Qualifying Costs/Eligible Expenses: At least a quarter of your core expenditure for production must be spent within the EEA to be classed as qualifying costs.

Which Exhibitions Qualify for Museums and Galleries Exhibition Tax Relief?

Even if your museum exhibition meets the criteria in the previous section, some exhibitions will not receive MEGTR if they fall into certain categories.

This tax relief is available for any primary production company or secondary production company that puts on a qualifying exhibition.

Primary and secondary production companies are classed as below:

Primary Production Company:

• Must make an effective creative, artistic, or creative contribution
• In charge of contracts
• Production, running of the exhibition, and de-installation and closing of the exhibition

Secondary Production Company:

• Production and running of the exhibition at the venue
• De-installation of the exhibition at the venue

The museum exhibition cannot be a competition nor have any provable connection to an organised competition.

You will not be eligible for MEGTR if the primary intention is for the sale of the exhibited items. 

Furthermore, the exhibition cannot be used for advertisement purposes or selling services.

No living creatures are allowed to be exhibited in MGETR-funded exhibitions.

In regards to MGETR, the definition of an exhibition is a curated display of an organised collection of objects or works displayed as scientific, historical, artistic or of cultural interest. A qualifying exhibition can also be a single object.

It is also not possible for the museum to feature a live performance. However, there is some leeway in cases where the live performance is an incidental element of the exhibition, and more than one venue is involved. Contact TaxBite today for bespoke advice.

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What is a Touring Exhibition?

To be classified as a touring exhibition in relation to Museums and Galleries Exhibition Tax Relief, the following is required:

1. Touring must be the sole intention from the earliest planning stages to be recognised as touring exhibitions.
2. Two or more venues must hold the exhibition.
3. A quarter of the displayed items from the first venue/exhibition must also be showcased at every subsequent venue.
4. No more than six months can pass between the exhibition’s de-installation at one venue and its installation at the next venue or any subsequent venues thereafter.
5. A Primary Production Company is required for the original exhibition. At all further exhibitions, a Secondary Production Company is required. 

What are the 4 key benefits of Museums and Galleries Exhibition Tax Relief?

Funding Opportunity

MGETR provides cultural venues with the financial resources to create exhibitions that can reach a larger section of the public.

Increased Visitor Numbers

The funding can be used for a wide range of purposes, whether that’s on promotion or increasing staff numbers, which translates into more visitors and a wider audience.

Improve Local Economy

Members of the public who travel to the exhibition or museum will spend money at local businesses.

Fast Pay-Out

Successful applicants receive MGETR only one month after submitting the paperwork.

What is the Museums and Galleries Exhibition Tax Relief (MGETR) claims process?

TaxBite’s motivated team of accountants are available to look after your MGETR claims. Our usual process to claim this relief can be found in the steps below:

1. Company Analysis/Audit Work: We carry out our research analysis of qualifying companies such as charitable companies and companies wholly owned by local authorities who are looking to claim MGETR. We then assess which costs are eligible for MGETR (total core expenditure). This is to secure the maximum tax credit the company is eligible for and what expenditure qualifies for the relief.
2. Submission to HMRC: Following the successful collection of all the relevant documents, we then handle the submission with HMRC. We require documentation to include the following:
   • Corporation Tax details
   • Core Expenditure information
   • Exhibition Costs
3. Processing Your Claim: MGETR claims are usually processed within one month from the submission date. We’ll look after any new requests for additional details or information from HMRC.

Claims can be submitted or changed up to one year from the tax filing date. However, late claims will be accepted by HMRC in certain cases, so if you’re concerned, TaxBite will be delighted to provide detailed guidance.

Get Started

Our team of chartered accountants regulated for a range of investment business activities are waiting to help eligible exhibition tax relief museums make a claim. So, if you are a limited liability partnership registered in the UK (i.e. a company wholly owned by a local authority), or a charitable company looking to claim MGETR or any other creative tax reliefs on your exhibition, contact TaxBite today to claim your payable tax credit!

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Other Creative Tax Reliefs Available