FAQ

MGETR is a valuable funding opportunity for museums and galleries, helping them create engaging exhibitions for the public. MGETR supports museums and galleries to develop new permanent and temporary exhibitions for the benefit of the general public. Unlike some other creative tax reliefs, there is no requirement for certification via a cultural test. However, MGETR is only available to charities or local authorities.

Unfortunately not. Council run museums in principle are not eligible, however there is a way that councils can make themselves eligible. This is a specialised area of law but it is possible and Mo has real life examples of how this can be done. Please contact him if you are interested in exploring this more.

Museums and Galleries Exhibition Tax Relief is currently worth up to 40% of production costs.

• 80% of total core expenditure
• the amount of core expenditure on goods or services that are provided from the UK and/or the EEA

Depending on your accounting period, you will only be able to claim for European expenditure or UK expenditure. Accounting periods beginning on or after 1 April 2024 can only claim for UK expenditure; before this will be UK or EEA expenditure. Your accounting period will also decide which minimum core expenditure requirement you need to follow.

MGETR can be claimed as a reduction in Corporation Tax credit. However, loss-making companies can surrender their losses for a cash credit!

Current cash credit rates are:

45% for touring exhibitions (drops to 40% from 1 April 2025)

40% for non-touring exhibitions (drops to 35% from 1 April 2025)

Primary and secondary production companies can claim for MGETR, so long as they meet the basic requirements. To qualify, your company must meet the following conditions:

• You must be a charitable company, or a company wholly owned by a charity or local authority.
• You must maintain a museum or gallery.
• You must be responsible for producing and running an exhibition at a venue and actively engaged in the decision-making process.

You’ll need to check that your production qualifies, too. The first thing to check is that your exhibition is a curated display of a collection (or of a single object) considered to be of scientific, historic, artistic or cultural interest. The exhibition must be intended to be open to the general public, irrespective of admission charge. At least 25% of your core production expenditure is within the UK and/or European Economic Area (EEA). From 1 April 2024, a new rule replaces this condition: 10% of expenditure must be in the UK.

Museums and Galleries Exhibition Tax Relief is claimed as part of the Company Tax Return (CT600) filed with HMRC. You’ll need to elect to treat all costs related to the exhibition as a separate trade.

You need to submit the following information alongside the CT600:

• An Additional Information Form (AIF), which must be submitted before the CT600
• Details about touring (if necessary)
• Details of the primary production company (if the claim is made by the secondary)
• Analysis of the trade expenditure, broken down by category and by EEA and non-EEA spending

You’ll need to calculate if your exhibition has made a profit or a loss. This lets you determine whether you can claim MGETR as a reduction in Corporation Tax or if your losses should be surrendered for a cash repayment.

To claim the higher rate for touring exhibitions, your exhibition must:

• Have been intended as a tour at the outset.
• Be held at two or more venues.
• Have at least 25% of the objects or works displayed at the first venue also displayed at each following venue.
• Be de-installed and installed at the next venue in a maximum of six months.
• Have a Primary Production Company for the first venue, and a Secondary Production Company for all future venues.

There are four phases to setting up an exhibition:

1. Phase 1 – Speculative development – before the decision to proceed (Green-lit) with the exhibition is made
2. Phase 2 – Production and installation (incurring set-up costs)
3. Phase 3 – Running phase – the exhibition is open to the public
4. Phase 4 – Dismantle and close the exhibition (deinstallation costs are only eligible if the exhibition is open for 12 months or less)

Only costs incurred during Phase 2 and Phase 4 qualify for the relief. Indirect costs, such as marketing and legal costs do not qualify for the relief.

Storage expenditure is allowed as core expenditure for up to 4 months if all of these conditions are met:

• The exhibition is held at two or more venues
• The expenditure is incurred between de-installation at one venue and the opening at the next venue
• The exhibits are not stored at a venue at which the exhibition has been or is to be held

Core expenditure does not include:

• Speculative development before the project is “green-lit”
• Non-producing activities (e.g., marketing)
• Running the exhibition during the period which it is open to the public
• Expenditure on purchasing exhibits
• Expenditure on infrastructure

The maximum repayable credit is capped at £100,000 for touring exhibitions and £80,000 for non-touring exhibitions. There is no cap on the amount that can be claimed as a reduction in Corporation Tax.

Yes you should still include exhibitions where you have received money, whether that is grant funding or ticket sales for that exhibition. Do not include sales of tickets for entrance to the museum as a whole. Only include if the ticket gives entrance exclusively to that exhibition.

Yes. There is no requirement to pay corporation tax. Very few charities pay corporation tax but they are able to make MGETR claims.

If you are registered as a charity with the charity commissions, you will be a charity.

No, but you could consider changing your constitution to become a charity.

No, but you could consider restructuring in order to become a company or charity.

No, but you could consider restructuring. Mo works in collaboration with a firm of solicitors who provide a turn-key fixed fee solution that enables the council to be eligible to claim.

Charities are “within the charge to corporation tax” but are exempted from tax on their primary-purpose activities, hence many charities do not prepare tax returns.  However, charities can make claims for MGETR.

Yes.  Claims are based on when the expenditure is incurred, not when the exhibition opens.

Yes.

No. Although you must be responsible for maintaining a venue, you do not need to be responsible for the venue where the exhibition or display takes place.

No. HMRC have confirmed that online displays do not constitute a ‘venue’. If the digital exhibition forms part of a wider exhibition/display with a physical presence, then the exhibition could still qualify, and costs related to the physical exhibition could qualify.

If you pay another organisation to acquire rights to an exhibition which you host, you may qualify as a secondary exhibition company. You should therefore be able to claim for core costs in respect of putting on the exhibition at your venue.

No. If this is an incidental part of the exhibition/display and is not a routine part of the exhibition then the exhibition should still qualify.  Costs associated with the live performance would not be eligible core expenditure.

You may wish to consider whether you are producing one exhibition or whether you are producing multiple exhibitions as part of your refurbishment. Mo Suleman would be able to advise how best to maximise the claim.

To the extent that this relates to interpretation and forms part of the exhibition at your venue, we would generally expect the costs of producing this content to be core. However if, for example, the video content is developed for your website then this is unlikely to be eligible.

Some exhibitions may meet the qualifying criteria, but are not eligible if they meet any of the below conditions:

• The exhibition is connected with a competition of any kind.
• One of the primary purposes is to sell anything displayed or to advertise or promote any goods or services.
• The exhibition includes a live performance by a person.
• Anything on display is for sale.
• Anything on display is alive.

You usually have two years from the end of the accounting period to submit a claim. However in certain circumstances you can go back max 6 years. Mo has several examples of successfully going back 5 years and getting back dated claims paid. Please contact him if you are interested in exploring this.