MGETR60070 - Museums and Galleries Exhibition Tax Relief: eligible expenditure: European and UK expenditure - transition rules

For accounting periods ending on or after 1 April 2024, the amount of additional deduction is no longer based on the amount of qualifying expenditure that is also European expenditure. Instead, it is based on the amount of qualifying expenditure that is also UK expenditure. 

UK expenditure is defined as: ‘expenditure on goods and services which are used or consumed in the United Kingdom’. 


If a company’s accounting period straddles 1 April 2024 and it has incurred qualifying expenditure on a production both before and after that date, the company may calculate the additional deduction for that accounting period as follows: 

The references to ‘qualifying expenditure incurred to date as is UK expenditure in (2)(a) and (3)(a) of s1218ZCF of the Corporation Tax Act (CTA) 2009 are to be read as 

  • qualifying expenditure incurred before 1 April 2024 which is European expenditure, plus 

  • qualifying expenditure incurred from 1 April 2024 which is UK expenditure. 


If a production enters the production phase before 1 April 2024, the production company can elect to use European expenditure incurred up until 1 April 2025, and UK expenditure incurred from 1 April 2025. 

For the purposes of this rule, a production enters the production phase when core expenditure (MGETR60010) is first incurred on it. Note that the test is the date expenditure is incurred; it does not matter if that expenditure is not claimed for relief until a later date, or is never claimed.