MGETR20070 - Museums and Galleries Exhibition Tax Relief: Making a claim: Payment of tax credit

S1218ZCJ Corporation Tax Act 2009

Set off against other liabilities

Where a production company claims a Museums and Galleries Exhibition tax credit that it is entitled to, HMRC must pay them the credit unless:

• the company owes Corporation Tax, in which case the credit and any repayment interest due to the company may be used to offset the liability
• the company has outstanding or purported liabilities to PAYE or Class 1 National Insurance contributions for the period for which the credit is owed, in which case the payment may be withheld
• the company’s Corporation Tax Return for the period in question is under enquiry by HMRC, in which case the the payment may be withheld; a provisional partial payment may be made if appropriate
• the company is in administration or liquidation, in which case the payment may be withheld (applies only to claims made on or after 1 April 2024)

S130 FA 2008 also allows HMRC to set off a credit against any existing debit irrespective of whether or not the payment period falls within the accounting period.

Repayment interest

Payment of the tax credit will carry interest from the later of:

• the filing date for the company’s tax return, for the period in relation to which the credit is payable, or
• the date on which the tax return (or amended return) in which the claim is included was delivered to HMRC.