MGETR20060 | Museums and Galleries Exhibition Tax Relief: Making a claim: Extended time limits where relief is to be reduced

S1218ZEA Corporation Tax Act 2009

The normal time limits for amending returns and making assessments are overridden in certain circumstances.

This will occur where the production company is required to amend a return to reflect the fact that they were not entitled to Museums and Galleries Exhibition Tax Relief (MGETR) for a period. This would arise when the level of UK expenditure fails to reach at least 10% of core expenditure on the exhibition (MGETR50040, S1218ZCC). NB: prior to 1 April 2024, the minimum expenditure condition instead required at least 25% of core expenditure to be European expenditure. Please see MGETR50040 and MGETR50045 for details.

The extension applies to assessments and situations where the MGETR claim was in excess of the amount the company was eligible for.

Where, under the amended return, the company is entitled to less relief than under the original return and therefore has to repay HMRC, interest will be due. Penalties will not typically be due unless the erroneous claim was made deliberately or due to carelessness.

This is the case regardless of whether the MGETR simply reduced the Corporation Tax payable by the company, or if a claim for a tax credit was made.

If a company amends a claim originally made before 1 April 2024, the requirement to complete an additional information form (MGETR20030) does not apply.