ICAEW.com works better with JavaScript enabled.


Museums and galleries missing out on claiming cash credits


Published: 01 Apr 2022 Update History

A research paper by HMRC indicates poor uptake of vital tax relief for museum and galleries.

HMRC has noted that the take-up for the Museum and Galleries Tax Relief (MGTR) has not been as widespread as anticipated. The tax relief allows qualifying companies and charities to claim a cash credit on the costs of developing new exhibitions, up to a maximum of between 36% and 40%.

The available credit has been temporarily increased to give the sector a boost as it reopens following the pandemic.

For this research paper HMRC collaborated with 35 eligible organisations to explore the experiences of any claims made, barriers to uptake, and why some are not claiming. It was clear that a lack of awareness and understanding of the relief was the biggest barrier to claiming. This is often more prevalent among smaller charities who don’t have specialist tax advisers to help them navigate the process. Many non-claimants had incorrectly assumed that the relief was not relevant to them as the inclusion of the word “tax” in the name led them to believe that they needed to be tax paying.

MGTR is the only creative tax relief regime that includes a sunset clause that allowed HMRC to review its continued application from 1 April 2022. At the Autumn Budget, it was announced that the sunset clause would be extended to 1 April 2024.

However, the research report highlights that as many exhibitions take several years to plan and some organisations would need to make administrative and structural changes to benefit from the relief, removal of the sunset clause would provide assurance that the costs associated with making claims will provide ongoing benefit.

Further information

Tax Faculty

This guidance is created by the Tax Faculty, recognised internationally as a leading authority and source of expertise on taxation. The Faculty is the voice of tax for ICAEW, responsible for all submissions to the tax authorities. Join the Faculty for expert guidance and support enabling you to provide the best advice on tax to your clients or business.

More support on tax

ICAEW's Tax Faculty provides technical guidance and practical support on tax practice and policy. You can sign up to the Tax Faculty's free enewsletter (TAXwire) which provides weekly updates on developments in tax.

Sign up for TAXwireJoin the Tax Faculty

More from the Tax Faculty

Latest news
Making tax digital image

Stay up to date with the latest developments in tax by signing up to the Tax Faculty's weekly e-newsletter

Practical guidance

Comprehensive support for Tax practitioners each month from the Tax Faculty and expert contributors.

Technical support
Tax Faculty image

Expert advice from the Tax Faculty's technical managers on all the developments in tax policy and practice.