PART 15E

Museums and galleries exhibition tax relief
CHAPTER 3

Museums and galleries exhibition tax relief

Companies qualifying for museums and galleries exhibition tax relief

“Core expenditure”
1218ZCD
1
Subject to the following provisions of this section, in this Part “core expenditure”, in relation to a company’s production of an exhibition, means expenditure on the activities involved in producing, deinstalling and closing the exhibition at every relevant venue.
2
For the purposes of subsection (1) a venue is a “relevant venue” in relation to a company if the company’s activities in relation to the exhibition at the venue form part of the company’s separate exhibition trade.
3
Expenditure on the activities involved in deinstalling and closing the exhibition at a venue is core expenditure only if the period between the opening and closing of the exhibition at the venue is 12 months or less.
4
Expenditure on the storage of exhibits for an exhibition which is held at just one venue is not core expenditure.
5
Where a company incurs expenditure on the storage of exhibits for an exhibition which is held at two or more venues, the amount of such expenditure which is core expenditure is limited to the amount of relevant storage expenditure (if any) incurred by the company in respect of a period of 4 months or less.
6
For the purposes of subsection (5) expenditure in relation to the exhibition is “relevant storage expenditure” if—
a
the expenditure is incurred in respect of the storage of exhibits between the deinstallation of the exhibition at one venue and the opening of the exhibition at the next venue, and
b
the exhibits are not stored at a venue at which the exhibition has been held or is to be held.
7
Expenditure of the following kinds is not core expenditure—
a
expenditure on any matters not directly involved with putting on the exhibition (for instance, financing, marketing, legal services
, promotional events, and the provision of incidental goods or services to visitors
),
b
speculative development expenditure on initial exhibition concepts and feasibility,
c
expenditure on the ordinary running of the exhibition (for instance, invigilation and the maintenance of exhibits),
d
expenditure in relation to any live performance,
e
expenditure on further development of the exhibition during the running stage,
f
expenditure on purchasing the exhibits, and
g
expenditure on infrastructure, unless that expenditure is incurred solely for the purposes of the exhibition.
Pt. 15E modified (temp.) (with application in accordance with s. 21(1)(4) of the amending Act) by Finance Act 2022 (c. 3), s. 21(1)(4)
Pt. 15E modified by 2010 c. 4, s. 357UR(3) (as inserted (with effect in accordance with Sch. 6 para. 20 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 17)
Pt. 15E inserted (for specified purposes and with effect in accordance with Sch. 6 paras. 20, 21(1)(a) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 1 (with Sch. 6 para. 21(3))
Words in s. 1218ZCD(7)(a) substituted (with effect in accordance with Sch. 5 para. 3(2) of the amending Act) by Finance Act 2024 (c. 3), Sch. 5 para. 3(1)