Exhibition tax relief is available to museum and gallery charities that operate under a limited company structure. Touring and non-touring exhibitions are both eligible.
Claiming a relief from HMRC
A qualifying company is a charitable company, or a company wholly owned by a charity or local authority which maintains a museum or gallery. Broadly, the qualifying company can either be the primary exhibitor or a secondary venue that hosts the touring exhibition in order to receive Museums & Galleries Exhibition Tax Relief (MGETR).
WR Partners has extensive experience in claiming back valuable tax relief for the creative sector.
What is a qualifying exhibition?
If the exhibition is held at numerous venues, the primary company must be responsible for at least the first of those venues. There can only be one primary production company for an exhibition. If the exhibition is held at two or more venues, there may be secondary production companies. A secondary production company must be responsible for producing and running the exhibition at a venue and actively engaged in decision-making concerning that venue. There may be more than one secondary production company related to an exhibition.
The exhibition should be curated as a public display of an organised collection of objects or works considered to be of scientific, historic, artistic or cultural interest. The core purpose of the exhibition must not be to sell the objects of the exhibition. At least 25% of the core expenditure is spent on goods or services that are provided from within the European Economic Area (EEA).
What is the benefit of MGETR?
With Museums & Galleries Exhibition Tax Relief, the company will be able to deduct an additional 80% of qualifying production costs from their profits to reduce their profits subject to tax or create a loss that can be surrendered for a cash payment from HMRC.
The rate of payment was increased from 27 October 2021, 20% (non-touring productions & exhibitions) and 25% (touring) of the loss surrendered, to 45% and 50% respectively. From April 2023 the rates will reduce to 30% and 35%, before returning to their current 20% and 25% from 1 April 2024.
FAQs
Where can I get tax advice?
Our tax consultancy team at WR Partners is able to provide tax advice on a wide range of taxes.
What is tax advice?
Tax advice can cover income tax or corporation tax advice on your business profits as well as VAT on business transactions. It can include capital gains tax or stamp duty land tax advice on disposing of a property as well as inheritance tax when you pass assets on to others.
Is tax advice confidential?
Absolutely – we never share tax advice provided to our clients with third parties unless the client specifically requests that we do so.
Can I claim financial advice as a tax deduction?
That will depend on the nature of the advice – there is no hard and fast rule, unfortunately.
How do I work out VAT?
Broadly speaking, VAT is 20% of your taxable supplies. In your VAT return, you can deduct 20% of the associated input VAT and the result is the amount owed to or from HMRC.
What are the types of property tax in the UK?
There are many different types of taxes on property. There are corporate taxes if the property is held by a company, such as corporation tax and the annual tax on enveloped dwellings. There are individual taxes such as income tax on rental profits and capital gains tax if a property is disposed of. There are also transaction taxes (SDLT, LTT or LBTT depending on where the property is in the UK).
Is there a difference between English and Welsh tax systems?
For income tax, the Welsh Government is able to vary the income tax rate to a point. To date, they have chosen to keep the same rate as for taxpayers in England. This means that Welsh taxpayers should identify which country they are paying tax in, in order to pay to the right authority. This can be done through your PAYE code but also it is declared in your self-assessment tax return. There are also differences between the English Stamp Duty Land Tax and the Welsh Land Transaction tax.
How do I reduce my tax?
There are a variety of ways to mitigate a tax charge. Depending on your circumstances this might be by claiming a particular relief or expense against your taxable income or reducing the tax you pay because some types of income or gains attract lower tax rates.
Get in Touch
We love meeting new, exciting businesses. Get in touch with our team to see how we could enhance and protect your financial position.
Or if you’d prefer to speak to someone directly just give us a call on: 08000 664 664 or email: hello@wrpartners.co.uk.
"*" indicates required fields