Where a company is a Museums and Galleries Exhibition Production Company (MGEPC) for the purposes of Part 15E Corporation Tax Act 2009, each qualifying exhibition is treated as a separate exhibition trade if Museums and Galleries Exhibition Tax Relief (MGETR) is claimed in respect of that exhibition.
An Exhibition is qualifying if it meets each of conditions:
the exhibition is a curated public display
the exhibition is intended to be open to the general public
at least 25% of the core expenditure on the exhibition must be European Economic Area (EEA) expenditure
A touring exhibition is qualifying if in addition to the above
it is held at two or more venues
at least 25% of the objects or works displayed at the first venue are also displayed at subsequent venues
the period between deinstalling the exhibition at one venue and installing it at the next does not exceed 6 months
there is a primary production company for the exhibition and that company is with the charge to corporation tax
S1218ZAA Corporation Tax Act 2009
An exhibition qualifies if it is one which is a curated public display of an organised collection of objects or works considered to be of scientific, historic, artistic or cultural interest.
It can consist of a single work or object. A display is public if the public are admitted to it. This condition is met whether or not the public is charged for admission.
A display will still be considered to meet this condition even if visitors other than the general public are admitted for a single or small number of sessions. A small number must be considered in relation to the total number of sessions.
An exhibition will not be a qualifying one if
its main purpose, or one of its main purposes, is sell anything displayed or to advertise or promote goods or services
it is organised in connection with a competition of any kind
it includes a live performance by any person (except where that performance is merely incidental to or forms a merely incidental part of the exhibition)
anything displayed is for sale
anything displayed is alive
The restriction on selling relates to the exhibition itself. If, for example, a gallery exhibits a display of new works commissioned from several artists, the fact that those artists may later sell some of the works will not prevent the exhibition from qualifying.
In the case of a live performance “merely incidental” will take its ordinary meaning and be considered in relation to the exhibition as a whole. For example, an exhibition of sculpture could contain a living sculpture in an exhibition of 20 or more objects, a display of historical arms could have a display by a swordsman in one room of an exhibition stretching over several rooms.
Although the circumstances of each need to be considered it is likely that these would be considered incidental. On the other hand, if the living sculpture was a famous person, then they are likely to be considered the main object of an exhibition and so not “merely incidental”.
Hammad Baig can assist in relation to the relief available to Museums and Galleries Exhibition Production Companies.
