Exhibitions Tax Relief - Update
The 2017 Finance Bill has proceeded without the museums and galleries tax relief clause, more information to follow.
What is the Exhibitions Tax Relief?
This tax relief allows eligible museums and galleries which are charities to claim tax relief for qualifying expenditure on new exhibitions. This includes permanent exhibitions and those that tour.
The scheme will allow museums and galleries to reclaim some of the cost of putting on exhibitions – whether temporary, permanent or touring. The aim is to support museums and galleries to develop new exhibitions for the public. It is a great opportunity for a broad range of museums and galleries to gain financial assistance from the government.
This tax relief is a new initiative and is different from the existing scheme that allows museums which offer free admission to recover VAT on related costs.
What is the rate and when can I claim?
Relief will apply at rates of 20% for non-touring exhibitions and 25% for touring exhibitions. Relief will be capped at an equivalent of £500,000 of qualifying expenditure per exhibition. The relief is calculated based on 80% of qualifying expenditure. The qualifying expenditure must be incurred on and after 1 April 2017 and before 31 March 2022.