MUSEUMS & GALLERIES
TAX RELIEF

Museums and Galleries Tax Relief (MGTR) is a tax incentive introduced by the UK government to support the cultural sector. It allows eligible museums and galleries to claim tax relief on qualifying expenditure incurred on exhibitions and certain related activities, providing a meaningful financial boost to organisations that play a vital role in the country's cultural life.

The relief is intended to encourage the creation, development, and touring of high-quality exhibitions, fostering broader cultural engagement, supporting public access to the arts, and contributing to wider economic growth in the regions where exhibitions are staged. For many institutions, MGTR has become an important source of funding that helps offset the rising cost of mounting ambitious and accessible exhibitions.

The relief is available to qualifying charitable companies and their wholly owned trading subsidiaries that are responsible for producing exhibitions. Both permanent and temporary exhibitions can qualify, provided the relevant conditions are met.

Tax Relief on Qualifying Spend

Under MGTR, eligible museums and galleries can claim relief on qualifying expenditure related to the development, production, and touring of exhibitions. Qualifying expenditure may include costs associated with:
 

• Design of the exhibition and its associated displays

• Construction of sets, mounts, and exhibition spaces

• Curation, including research and the preparation of interpretive content

• Transport of exhibits and supporting materials

• Insurance covering items on display during the qualifying period

• Installation and de-installation of the exhibition

• Costs incurred in the production phase, up to and including the opening of the exhibition

The relief works by allowing an additional deduction in computing the taxable profits of the qualifying production, or, where the production is in a loss-making position, by enabling the surrender of those losses in exchange for a payable tax credit. The exact rate of relief depends on whether the exhibition is touring or non-touring, and on the rates in force at the time the expenditure is incurred.

It is worth noting that not all costs associated with running a museum or gallery will qualify. Day to day operational costs, marketing expenditure, and post-opening running costs generally fall outside the scope of the relief. Identifying which costs qualify, and apportioning them accurately, is one of the key technical aspects of preparing a robust claim.

Be aware of the time limits