MGETR90030 - Museums and Galleries Exhibition Tax Relief; avoidance; tax avoidance arrangements

S1218ZCM Corporation Tax Act 2009

The Museums and Galleries Exhibition tax regime includes a targeted anti-avoidance provision (TAAR) designed to prevent contrived arrangements aimed at inflating the amount of Museums and Galleries Exhibition Tax Relief (MGETR) to which a Museums and Galleries Exhibition Production Company (MGEPC) is entitled.

Its effect is to exclude any transaction undertaken with the aim of inflating the relief.

A company will not qualify for relief where the main or one of the main purposes of the arrangements is to claim the Museums and Galleries Exhibition Tax Credit (MGETC) or otherwise benefit from the relief to obtain a tax advantage such as gaining MGETR that would not otherwise be available. This may include increasing the amount of additional deduction or MGETC beyond what was otherwise available.

The meaning of ‘tax advantage’ is given by Section 1139 of Corporation Tax Act 2010.