MGETR10090 - Museums and Galleries Exhibition Tax Relief: Temporary uplift and new permanent rates
Finance Act 2022 introduced a temporary uplift in the rate of Museums & Galleries Exhibition Tax Credits for exhibitions that enter the production phase on or after 27 October 2021. This uplift was extended for a further two years by the Finance (No 2) Act 2023.
The Finance (No 2) Act 2024 replaced the uplifted rates from 1 April 2025 with new permanent rates of 45% for touring exhibitions and 40% for non-touring exhibitions. Unlike the uplifted rates, the new permanent rates are available to all exhibitions, including those which entered production before 27 October 2021.
What is meant by the production phase is outlined in MGETR60020.
For exhibitions which began production on or after 27 October 2021, the rates are as follows:
| Accounting period | Touring rate (%) | Non-touring rate (%) |
|---|---|---|
| 27 October 2021 - 31 March 2025 | 50 | 45 |
| From 1 April 2025 | 45 | 40 |
For productions which began production before 27 October 2021, the rates are as follows:
| Accounting period | Touring rate (%) | Non-touring rate (%) |
|---|---|---|
| Up to 31 March 2025 | 25 | 20 |
| From 1 April 2025 | 45 | 40 |
Where a company’s accounting period straddles any of the above dates, the company should split that period into two separate notional accounting periods ending or starting on this date. The company should calculate its profit/loss for each period and then calculate Museums & Galleries Exhibition Tax Relief (MGETR) for each period separately. The two computations may be submitted in the same CT600 tax return.
See CTM01405 for more information about how to apportion accounting periods.
Example
A Museums & Galleries Exhibition Production Company (MGEPC) typically makes up its accounts for 12 month periods ending on 31 December.
The MGEPC begins work on a new non-touring exhibition and enters the production stage on 1 January 2025. The company incurs core production expenditure for five months, until 1 June. The exhibition runs for 2 months (until 31 July); some closing costs are incurred in August.
The trade commences on 1 January and ceases when the production is completely closed on 31 August.
The MGEPC’s accounting period straddles the date of a rate change: 1 April 2025. The company must therefore create two separate accounting periods for the purposes of their MGETR claim. Income and costs should be apportioned between the periods in a reasonable manner.
Period 1: 1 January 2025 – 31 March 2025
Period 2: 1 April 2025 – 31 August 2025
The production stage is 5 months long, with 3 months falling into Period 1 and 2 months into Period 2. Assuming that expenditure was incurred relatively evenly across all five months, it is reasonable to split the production stage expenditure equally over those 5 months, allocating 3/5 to Period 1 and 2/5 to Period 2.
The running costs are non-core but wouldn’t be recognised until they occur, in Period 2. The closing costs are potentially core and would also be recognised in Period 2.
Losses that arise in Period 1 can be surrendered for a tax credit at 45%.
The amount of profit/loss and of MGETR for Period 2 must be calculated on a cumulative basis, as for multi-period productions. Any losses that arise can be surrendered at a rate of 40%.