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MGETR60060 | Museums and Galleries Exhibition Tax Relief: eligible expenditure: UK expenditure

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

The amount of Museums & Galleries Exhibition Tax Relief (MGETR) to which a production company is entitled is determined by the amount of core expenditure which is also UK expenditure.

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

The nationality of those providing the goods and services has no bearing on whether the expenditure qualifies as UK expenditure. The ‘used or consumed’ test does not focus on the supplier of goods and services but instead concentrates on the recipient or customer as the means of determining UK expenditure.

In order to determine whether an item of expenditure incurred in relation to an exhibition should be treated as UK expenditure, it is necessary to establish:

  • the nature of the specific goods or services in question; and

  • the place where the recipient uses or consumes those goods and services.

Production

Production costs are allowable provided they relate to exhibitions held at venues in the UK. If the exhibition is a touring exhibition with some venues in the UK and some overseas, any costs that relate to the exhibition as a whole and not a specific venue (e.g. rights payments, consideration for use of an item/artefact) must be apportioned on a just and reasonable basis.

For example, a reasonable basis would be cost multiplied by

the number of days the exhibition is open in the UK ÷ the number of days it is open overall

Freight

Freight costs qualify if part of the journey takes place in the UK. Therefore, they will qualify if the shipping is:

  • wholly within the UK

  • From the UK to a destination abroad

  • To the UK from a destination abroad

Expenses for freight shipping between destinations outside of the UK will not qualify.

ATA Carnet costs are allowable.

Storage costs

Storage costs will count as expenditure on a service used or consumed in the UK if the storage location is within the UK. It does not matter if the storage provider is based outside the UK.