HMRC have opened a consultation “Museums and galleries tax relief consultation” aiming to support museums and galleries and help them develop and display new exhibitions and collections.
The relief would be an addition to HMRC’s existing range of creative industries tax reliefs.
Key features include:
- Relief will be available to qualifying museums and galleries within the charge to UK corporation tax.
- Relief will be available for fixed and touring exhibitions.
- Relief will be given as an additional deduction against taxable profits, or a repayable tax credit in case of a loss.
- Rates of relief will not be announced until after the consultation is closed.
- Relief will be capped at the lesser of 80% of core expenditure, or the total core expenditure within the EEA.
- Qualifying core expenditure will include
- Curator costs
- Installation costs
- Insurance & transportation costs
- Ineligible costs will include
- Financing costs, legal & accountancy fees
- Acquisition costs
- Marketing & advertising
The consultation closes on 28th October, and HMRC propose to include legislation in Finance Bill 2017.
Links
Creative Industries Tax Reliefs: at a glance
Consultation document: Museums and galleries tax relief
