MGETR70020 - Museums and Galleries Exhibition Tax Relief: calculation: maximum amount of core expenditure subject to claim

S1218ZCF Corporation Tax Act 2009

The amount of Museums and Galleries Exhibition Tax Relief (MGETR) available is based on the UK core expenditure of each separate exhibition trade.  The Museums and Galleries Exhibition Production Company (MGEPC) will receive an additional deduction of up to 80% of the total core expenditure incurred on the production of the exhibition.

A MGEPC can claim MGETR on the lower of:

  • 80% of total core expenditure, and
  • the actual UK core expenditure incurred.

UK core expenditure is the amount of core expenditure incurred by the MGEPC which is also UK expenditure. UK expenditure is expenditure on goods or services that are used or consumed in the United Kingdom. See MGETR60060 for more detail.

If non-UK core expenditure is not more than 20% of total core expenditure then it will have no bearing on the amount of MGETR an MGEPC can claim, subject to the overall restriction per exhibition.

The amount on which the MGEPC is entitled to claim an additional deduction under MGETR is termed enhanceable expenditure.

Example 1: core expenditure all UK expenditure

A MGEPC incurs £100,000 of core expenditure on an exhibition, all of it on goods or services that are used or consumed in the UK.

UK core expenditure is more than 80% of total core expenditure.

The MGEPC can claim MGETR on 80% x total core expenditure.  The additional deduction is therefore £80,000.

Example 2: core expenditure part UK and part non-UK

A MGEPC incurs £200,000 of core expenditure on an exhibition, of which £125,000 is UK expenditure.  The remainder is incurred on goods or services that are used or consumed in the USA and is therefore non-UK expenditure.

UK core expenditure less than 80% of total core expenditure.

The MGEPC can claim MGETR on actual UK core expenditure.  The additional deduction is therefore £125,000.


European expenditure

Prior to 1 April 2024, European expenditure was used instead of UK expenditure. Please see MGETR60050 and MGETR60070 for details.