SO... What is it?
The Museum and Galleries tax relief was introduced in November 2017 as an opportunity to claim back money on the production of Exhibitions.
The premise of the tax relief is to allow museums and galleries which are charities to claim back some of the cost they incurred to put on their exhibitions, which the government hopes will make promoting the work of creative industries more sustainable.
Non-touring exhibitions rates of 20% and touring rates of 25% will be applied to the equivalent of £500,000 of qualifying expenditure per exhibition. Current calculations are based on 80% of qualifying expenditure but must be incurred on and after 1 April 2017 but before the 31st March 2022.
Do I qualify?
Even if you don't currently pay corporation tax, you can apply for the relief as long as you claim through a company that could potentially pay corporation tax. HMRC will cover the tax relief for the company if they don't infect pay corporation tax. Claiming as an individual is not allowed unless you are constituted as a company.
Is my exhibition eligible?
Exhibitions are defined as any scientific, historic, cultural or artistically-related objects, works or artefacts that are displayed. They must be accessible to the general public, but there may not necessarily be a charge to see the items. Your exhibition will not qualify if it for competition purposes or if your main purpose is to sell the products displayed.
The exhibitions should take place in a building such as a gallery or museum however libraries or exhibiting outside can also qualify. It should be planned, curated and there should be a clear understanding of what your exhibition is set out to achieve.
Touring exhibitions will qualify is shown in two or more venues and at least 25% of the pieces are shown at every subsequent venue after the first. A tour is also defined as a series of dates where you exhibit your work, and therefore the time gap between each location cannot exceed 6 months.
So how do I make a claim?
Incurring costs is inevitable when filing a claim due to the administration and resources used but it's important you seek advice prior to ensure you follow correct procedure. Claims go directly through the tax system so you will need to complete a full corporation tax return (CT600) as well as providing a breakdown of your exhibition costs. You will also be asked to provide accounts, tax computations and any evidence of other expenditure that you feel is relevant. You will not receive tax relief for marketing strategies, legal services, or running costs from the day of opening.