Consultation on museums and galleries tax relief

HM Treasury is consulting until 28 October 2016 on a new corporation tax relief for the creative and set-up costs of staging temporary and touring exhibitions, to take effect from 1 April 2017. The relief will take the form of an additional corporation tax deduction which can be surrendered for a payable tax credit, similar to other creative sector tax reliefs. Examples of ‘core’ expenditure will include:

·         curator and research costs;

·         exhibition installation;

·         exhibit loan costs;

·         digital spending;

·         insurance and transportation costs;

·         exhibition specific venue costs (including set-up) and equipment hire;

·         administration linked directly to the exhibition.

Day-to-day running costs and indirect expenditure, such as the costs of marketing or financing, will not be regarded as core expenditure eligible for the relief.

The government will announce the exact rate of relief after the consultation.

See www.bit.ly/2c5tNEb.