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MGETR60050 | Museums and Galleries Exhibition Tax Relief: eligible expenditure: European expenditure

From HM Revenue & Customs · Museums and Galleries Exhibition Tax Relief

S1218ZCC and S1218ZCD Corporation Tax Act 2009

Note: 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. The minimum amount of UK expenditure required is 10% of core expenditure. Please see MGETR60060 and MGETR50040. The following guidance applies to accounting periods ending before 1 April 2024.

The amount of Museums and Galleries Exhibition Tax Relief (MGETR) to which a Museums and Galleries Exhibition Production Company (MGEPC) is entitled in respect of an exhibition is determined by the amount of core expenditure (MGETR60010). At least 25% of this expenditure must be incurred in respect of qualifying goods and services that are provided from within the United Kingdom or European Economic Area (EEA).

The EEA includes European Union (EU) countries and also Iceland, Liechtenstein and Norway.

The EU countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.

Switzerland is neither an EU or EEA member.

In order to determine whether core expenditure is European expenditure it is necessary to establish if:

  • the goods are supplied from within the UK or EEA, or

  • any services are carried out within the UK or EEA.

Goods are supplied from within the UK/EEA if there point of origin is from the UK or an EEA member country. Goods which have a point of origin outside the UK/EEA are not European expenditure even if they are routed through the UK or an EEA country. If the goods are altered from their original state within the UK or an EEA country then the full expenditure will be European expenditure.

Services are those performed in the UK or EEA. A contract with a UK or EEA company is not the determinant, if the actual service is provided from elsewhere.

It may be necessary to apportion expenditure between European and non European where one payment covers the expenditure.