Museums and galleries tax relief consultation
22 September 2016
22 September 2016
A consultation has been published which proposes introducing a new tax relief for museums and galleries from April 2017.
In Budget 2016 this was announced as the government want to encourage the creation of more and higher quality exhibitions, as well as to support touring of exhibitions across the country and abroad, raising the UK’s profile internationally.
The relief will take the form of an additional deduction for corporation tax purposes which can be surrendered for a payable tax credit. To qualify for relief, the institution will therefore need to be within the scope of corporation taxes, for example a museum set up as a charitable company (or a charitable museum producing the exhibition through its trading subsidiary) or a museum set up as a subsidiary company under the control of a local authority.
From 1 April 2017, tax relief will be available for the creative and set-up costs of temporary or touring exhibitions but not for day-to-day running costs.
Geographical extent: The tax relief will be available to all four nations in the UK.
The government will announce the exact rate of relief at some point after the consultation closes (29 October 2016).
Museums and galleries tax relief consultation