Why MGETR is vital for the future of the UK’s cultural institutions

The Museums and Galleries Exhibition tax relief (MGETR) is a crucial part of keeping the future of UK cultural institutions alive. Whether it’s a local or national exhibition, the costs of producing these can be high, and leave options for funding limited. The MGETR is designed to help keep producing and cultivating these exhibitions.

Are UK cultural institutions in crisis?

The facts and statistics would suggest more needs to be done in order to help cultural institutions persevere as funding gets harder to obtain. With Brexit looming around the corner, it’s more crucial than ever for museums and galleries to ensure they have exhausted all methods of funding.

The facts

According to the Museums Association, in 2018, 4% of museums introduced new admission charges, whilst 11% reduced opening hours. However, visitors to museums remained high, despite this: 46% of museums claimed that their visitor attendance had increased.

• Funding 39% of local authority museums and 54% of independent museums reported a reduction in the overall museum fund. There’s also been a decrease in regular public income despite the fact that 37% of these museums said their overall funds had increased.
• The impact of Brexit The outcome of Brexit will play a huge part in museums and galleries, as staffing could be disrupted by Brexit due to 4% being non-UK EU citizens.

What is MGETR?                                                             

MGETR is a tax relief that allows touring and non-touring exhibtions to get between 20-25% of the costs spent on producing the exhibition back. The relief aims to alleviate the issues that might come with arts funding and help to maintain museums and galleries when funding might be difficult to acquire.

How do I claim MGETR?

The requirements are as follows:

• You must be a charitable company, wholly owned by a charitable company or wholly owned by a local authority.
• You must make an effective creative/technical contribution; negotiate, contract and pay for rights for good and services in relation to the exhibition; actively engage in decision-making; and be responsible for the production of the exhibition.
• At least 25% of the core expenditure on the production must be spent in the European Economic Area (EEA). There can be exemptions to this.

An exhibition is broken down into 4 main stages: developing, producing, running and de-installation. For more information, you can get in touch with our specialist MGETR relief team here.

How Haines Watts Helps

Tax relief claims need to be submitted with a company’s tax return. Our tax advisors in Newcastle can help translate HMRC’s complex legislation into plain English.

We can identify qualifying costs, ensure your exhibitions qualify and carry out the application on your behalf, taking the burden off your shoulders. We can also support you with other aspects of Creative Industry Tax Relief. Get in touch with us directly to find out more about tax reliefs.