MGETR60060 - Museums and Galleries Exhibition Tax Relief: eligible expenditure: UK expenditure

The amount of Museums听& Galleries Exhibition Tax Relief (MGETR) to which a听production听company is entitled is听determined听by the amount of core expenditure听which is also UK expenditure.听

UK expenditure is defined as: 鈥榚xpenditure on goods and services which are used or consumed in the United Kingdom鈥�.听

The nationality of those providing the goods and services has no bearing on whether the expenditure qualifies as UK expenditure. The 鈥榰sed or consumed鈥� test does not focus on the supplier of goods and services but instead concentrates on the recipient or customer as the means of determining听UK expenditure.听

In order to听determine听whether an item of expenditure incurred in relation to an exhibition should be treated as UK expenditure, it is necessary to establish:听

  • the nature of the specific goods or services in question; and听

  • the place where the recipient uses or consumes those goods and services.


Production听

Production costs are allowable provided they relate to exhibitions held at venues in the UK. If the exhibition is a touring exhibition with some venues in the UK and some overseas, any costs that relate to the exhibition as a whole and not a specific venue (e.g.听rights payments, consideration for use of an item/artefact) must be apportioned on a just and reasonable basis.听

For example, a reasonable basis would be cost multiplied by听

the number of days the exhibition is open in the UK听梅 the number of days it听is听open overall听


Freight听

Freight costs qualify if part of the journey takes place in the UK. Therefore, they will qualify if the shipping is:听

  • wholly within听the UK听

  • From the UK to a destination abroad听

  • To the UK from a destination abroad听

Expenses for freight shipping between destinations outside of the UK will not qualify.听

ATA Carnet costs are allowable.听


Storage costs听

Storage costs will count as expenditure on a service used or consumed in the UK if the storage location is within the UK. It does not matter if the storage provider is based outside the UK.听