Your trusted adviser for R&D Tax Credits, Creative Tax Relief, and R&D Grants
A blog that aims to simplify and demystify the Museums & Galleries Exhibition Tax Relief (MGETR) for museums and galleries of all sizes across the UK.
Museums & Galleries Exhibition Tax Relief was introduced in April 2017 to support cultural institutions and incentivise the creation and hosting of new exhibitions, offering significant financial advantages, but its complexities can sometimes act as a barrier to entry for potential claimants.
In this blog, we aim to provide clear and actionable advice on the eligibility criteria, application process, and financial impact of this valuable relief. As part of our commitment to enhancing the financial health and creative freedom of museums and galleries across the UK, we want to ensure that eligible institutions are not deterred by the perceived complexity of the process or lack of knowledge about what the relief offers.
The MGETR isn't just limited to temporary or touring exhibitions, but can also be claimed on semi-permanent exhibitions planned to last for up to 5 years. This inclusive piece of legislation acknowledges the cultural contributions of smaller institutions, enabling them to access the financial support they need to continue their valuable work.
Moreover, the MGETR doesn't just offer financial benefits. By reducing the overall cost of creating and touring exhibitions, it enables museums and galleries to experiment more freely with their offerings, creating more diverse and innovative exhibitions. It also encourages museums and galleries to collaborate and share their collections with a wider audience by making the financial aspect of touring exhibitions more manageable.
The Museums & Galleries Exhibition Tax Relief (MGETR) was introduced in April 2017 by the UK Government as an incentive to support cultural institutions and encourage the creation and hosting of new exhibitions. The MGETR was part of a broader set of creative sector tax reliefs, including those for Film, High-End TV, Animation, Video Games, Theatre, Orchestras, and Children’s TV. The reliefs aimed to promote the thriving creative industries in the UK and help cultural institutions manage their finances better, increase their investment in creative works, and enhance their sustainability in an ever-challenging funding environment.
The MGETR offers a corporation tax relief for qualifying expenditure on the production, de-installation, and touring of certain exhibitions. This means museums and galleries can recover a portion of their costs associated with creating and touring new exhibitions, as well as taking down such exhibitions.
Some assume that the process of claiming the relief is overly complicated and time-consuming. However, with a solid understanding of the MGETR and its advantages, museums and galleries can achieve stable financial health and a more vibrant and creative future. Ultimately, the MGETR offers a valuable opportunity for cultural institutions across the UK to expand their creative horizons, broaden their reach, and break down barriers to entry.
🎥🎭👾 Interested in understanding more funding opportunities? Explore our posts on Film Tax Relief, Animation Tax Relief, and Theatre Tax Relief for key insights!
👉 Film Tax Relief: How to Save Money on Your Film Production
👉 A Guide to Animation Tax Relief for UK Animation Companies
👉 Theatre Tax Relief: Unlocking Financial Opportunities for Theatre Production Companies
For exhibitions where the production phase started before 27 October 2021, relief will apply at rates of 20% for non-touring exhibitions and at 25% for touring exhibitions which is equivalent to 16p or 20p per £1 of qualifying expenditure respectively. The relief is capped at an equivalent of £500,000 of qualifying expenditure per exhibition. The relief is based on 80% of eligible expenditure, meaning the maximum cash repayment per exhibition will be £80,000 for non-touring exhibitions and £100,000 for touring exhibitions.
From 27 October 2021 to 31 March 2023 the rates will increase from the current 20% for non-touring exhibitions and 25% for touring exhibitions to 45% and 50% respectively. This is equivalent to 36p or 40p per £1 qualifying expenditure respectively. These rates apply to exhibitions where the production phase started on or after 27 October 2021. The maximum cash repayment per exhibition will be £180,000 for non-touring exhibitions and £200,000 for touring exhibitions.
For the year to 31 March 2024 year the rates will be 30% for non-touring exhibitions and 35% for touring exhibitions which is equivalent to 24p or 28p per £1 qualifying expenditure. The maximum cash repayment per exhibition will be £120,000 for non-touring exhibitions and £140,000 for touring exhibitions
The Museums & Galleries Exhibition Tax Relief (MGETR) offers a range of benefits to museums and galleries of all sizes. Firstly, it provides significant financial support by allowing businesses to claim a portion of their expenditure on exhibition production, tour, and de-installation.
For instance, if a museum spends £100,000 on a new exhibition, it can claim back up to £25,000 in corporation tax relief.
Furthermore, this relief is not only applicable to temporary or touring exhibitions, but also for exhibitions that last for up to 5 years. This breakdown in finances can help museums and galleries access more funds to invest in new exhibitions or upgrade their current collections.
In addition to financial benefits, the MGETR enables institutions to experiment more freely with their offerings, to create diverse and innovative exhibitions. This type of tax relief also encourages collaboration and international sharing of collections, where museums and galleries can share the cost of touring exhibitions. These benefits encourage creativity and innovation, by reducing the financial barrier while expanding the audience of exhibitions.
The MGETR also helps museums and galleries through times of financial strain. For example, funding from public sources may be limited or private donations may be affected by economic turmoil, affecting their ability to finance their operations. By availing of this tax relief, museums and galleries can more confidently undertake new exhibitions, better their collections or upgrade their existing facilities. This not only ensures their financial sustainability but also improves their reputation, boosting their attractiveness to investors.
The benefits of the Museums & Galleries Exhibition Tax Relief go beyond just financial incentives. It offers a solid foundation for cultural institutions to finance their operations, undertake new and innovative exhibitions, and enhance their collections while maintaining financial stability. Taking advantage of this tax relief ensures the sustainability of museums and galleries and, ultimately leads to greater diversification and audience engagement.
The Museums & Galleries Exhibition Tax Relief (MGETR) is an inclusive piece of legislation designed to provide financial support to museums and galleries of all sizes across the UK. However, to be eligible for this tax relief, institutions must meet specific criteria.
Firstly, to apply for this relief, museums and galleries must be recognised as charitable trusts, incorporated and unincorporated associations, or companies limited by guarantee. Additionally, the institution must be engaged in economic activities, such as the creation and touring of exhibitions, and must not be a public body.
Furthermore, to qualify for the MGETR, the exhibition must be accessible to the public and served to educate or provide information to the public about history, culture, science, or other fields of knowledge. It must also be curated for at least four weeks and can be either temporary, semi-permanent, or touring. The exhibition should not be a commercial advertisement or solely promote a product or service. Your organisation does not need to have paid corporation tax in order to claim the relief.
Additionally, the exhibition must be curated either by the museum or gallery staff or by independent curators contracted by the institution. The curators must be qualified and experienced in their field of expertise.
It's important to note that the MGETR is not applicable to the general running of museums or galleries or exhibitions that are solely used for purposes such as fundraising or private events.
By understanding these eligibility criteria, museums and galleries can determine whether they are eligible for the MGETR and begin the process of application. Institutions that meet these criteria can take advantage of the financial benefits of the MGETR, which can help them manage their finances better, enable greater investment in creative works, and increase their sustainability.
The MGETR is an inclusive piece of legislation that aims to provide financial benefits to museums and galleries throughout the UK. By meeting the eligibility criteria, institutions can reclaim a portion of their costs associated with creating and touring exhibitions, enabling them to be more creative and financially sustainable.
By now you know that The Museums & Galleries Exhibition Tax Relief (MGETR) is a valuable financial incentive. But how does it work? Let's dive into the specifics.
Firstly, let's consider the relief available. Qualifying expenditure on the production, de-installation, and touring of certain exhibitions can be claimed as a corporation tax relief. The amount of relief available is set at 80% of the “qualifying expenditure” incurred on that exhibition. When calculating the relief, organisations should also take into account any National Lottery funding they've received for the exhibition, as this will likely impact the amount of relief they can claim. There is no single maximum limit for how much relief can be claimed, with the amount varying depending on the specifics of each exhibition.
In terms of the process of claiming relief, this can either be done as a separate claim or as part of a corporation tax return. Eligible museums and galleries need to ensure they keep detailed records of all relevant expenditure, as they will need to accurately identify the qualifying expenditure associated with the production, de-installation, and touring of each exhibition. They will then need to include this information in their tax return or make a separate claim to HMRC.
It's also worth noting that the relief isn't just limited to temporary or touring exhibitions. Museums and galleries can also claim relief on semi-permanent exhibitions lasting for up to five years. This provides organisations with greater flexibility when planning their offerings and enables them to make more long-term investments in their exhibitions.
Overall, the MGETR offers a relatively straightforward process for museums and galleries to claim much-needed financial relief on their exhibition costs. By keeping accurate records, organisations can easily identify their qualifying expenditure and make a separate claim or include it as part of their corporation tax return.
Despite the many benefits of the Museums & Galleries Exhibition Tax Relief (MGETR), there are several myths and misconceptions surrounding this valuable tax relief legislation. In this article, we aim to address and dispel some of the most common misconceptions associated with the MGETR, so that museums and galleries can make more informed decisions about whether or not to apply for this useful tax relief.
One of the most pervasive myths is that applying for the MGETR is a lengthy and complicated process. While it's true that the application process for MGETR can be complex, it's important to note that once an institution has gone through the process once, subsequent applications can be much simpler. Additionally, many tax professionals specialise in Creative Industry tax credits and reliefs, and can provide support in navigating the process.
Another common misconception is that the MGETR is only available to large, nationally recognised institutions. However, the MGETR is designed to be inclusive and accessible to museums and galleries of all sizes, as long as they meet the eligibility criteria and can demonstrate that they are contributing to the cultural heritage of the UK.
A third misconception is that the MGETR is only applicable to temporary or touring exhibitions. In fact, the tax relief can be claimed on semi-permanent exhibitions that are planned to last for up to 5 years. This is an important point, as it means that museums and galleries can also claim the relief on popular exhibitions that stay in place for an extended period, such as those based on iconic figures like David Bowie or Leonardo da Vinci.
Lastly, there is a belief that the MGETR only applies to visual arts-based exhibitions. While visual arts are definitely covered under the MGETR, other types of exhibitions can also qualify, including those focused on history, science, and technology, as long as they meet the eligibility criteria.
By addressing these common myths and misconceptions, we hope to encourage more museums and galleries to take advantage of the valuable Museums & Galleries Exhibition Tax Relief.
In conclusion, this blog aims to simplify a complex topic - the Museums & Galleries Exhibition Tax Relief (MGETR) - and make it more accessible for all museums and galleries in the UK. We have outlined the key benefits of the tax relief in helping institutions manage their finances better and incentivising the creation of new exhibitions, as well as its inclusivity to museums and galleries of all sizes. We debunked the misconception that the relief is overly complicated and time-consuming to claim, and instead highlighted how it can offer financial benefits and creative freedom to museums and galleries in the UK.
We invite our readers to consider whether they could be eligible for the relief and encourage them to contact us with any questions you may have. We understand that navigating legislation like the MGETR can be daunting, and we're here to help. At Myriad Associates, our experienced team can identify all of your eligible projects and expenses so nothing is left behind. This means we can maximise your claim far more effectively than many in-house teams and general accountants.
As discussed in this post, the MGETR offers significant advantages to museums and galleries with qualifying expenditure on the production, de-installation, and touring of certain exhibitions. Importantly, it's not limited to temporary or touring exhibitions, but also semi-permanent exhibitions.
We hope this overview of the Museums & Galleries Exhibition Tax Relief has provided you with a better understanding of its benefits and eligibility criteria. However, our ultimate goal is to ensure that more museums and galleries across the UK can take advantage of this valuable relief.
That's why we invite you to share this article with others who might benefit from it. Whether you're a cultural institution looking to reduce your exhibition costs or a patron of the arts who wants to support local museums and galleries, spreading the word about this tax relief can make a real difference.
Don’t forget to take a look at our Museums & Galleries Exhibition Tax Relief webpage for more information.
You can call us on 0207 118 6045 or drop us a message and we'll call you back.
Understand how to calculate UK creative tax reliefs and maximise your claim—covering film, TV, animation, video games, theatre, and more.
Unlock tax savings with capital allowances—your guide to smarter investments for innovative, R&D-driven businesses.
Learn what evidence you need to claim VGEC in the UK, from required forms to documentation for HMRC compliance checks.
Please contact us to discuss how working with Myriad can maximise and secure R&D funding opportunities for your business.
Contact us
hello@myriadassociates.com