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UK Consults On Museums And Galleries Tax Relief

by Robert Lee, Tax-News.com, London

16 September 2016


The UK Government has published details of how the proposed tax relief for museums and galleries will work when it is introduced in April 2017.

According to a new consultation document, the aim of the relief "is to encourage the creation of more and higher quality exhibitions, as well as to support touring of the best exhibitions across the country and abroad, raising the UK's profile internationally."

The document explained that the relief will take the form of an additional deduction for corporation tax purposes, which can be surrendered for a payable tax credit. To claim the relief, an institution must qualify as a museum or gallery, and must be within the scope of corporate taxes.

The proposed definition of a museum is "a building or place devoted to the conservation, exhibition, and educational interpretation of collections having scientific, historical, or artistic interest." The proposed definition of a gallery is "a building or place that is used for the exhibition and educational interpretation of a collection of objects having scientific, historical, or artistic interest."

The relief will be available for the creative and set-up costs of temporary or touring exhibitions, but not for day-to-day running costs. To qualify as temporary, the period between opening and closing the exhibition to the general public must not exceed one year at a single location. An exhibition will only qualify as touring if the institution shows evidence at the beginning of the planning phase that it will present the exhibition in at least one other museum or gallery in a different location.

Following the model for previous creative sector tax reliefs, the relief will be capped at the lesser of 80 percent of core expenditure, incurred in any country, or the total core expenditure occurred in the European Economic Area (EEA). At least 25 percent of the qualifying core expenditure must be incurred in the EEA.

The consultation on the proposals will close on October 28. The Government will announce the exact rate of relief after the consultation.

TAGS: tax | tax incentives | corporation tax | United Kingdom | cultural heritage | education | tax rates | tax breaks | Europe

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