Arts & Business Scotland and Scott Moncrieff joint press release, 2 July 2018
A survey of Scottish museums and galleries by Scott-Moncrieff and Arts & Business Scotland suggests that 76% are not yet claiming a tax relief which is designed to support such organisations to exhibit. The Museums & Galleries Exhibitions Tax Relief (MGETR), which recently came into effect and applies back to 1 April 2017, accepts claims of up to £100,000 for touring exhibitions and £80,000 for non-touring exhibitions.
Building on the success of tax reliefs for other creative industries such as film, animation, theatre, and music, HMRC designed the MGETR to support museums and galleries in the development of new exhibitions and collections, and to encourage exhibitions for the benefit of the general public. In order to be eligible, exhibitions must not be part of a competition nor with the intention of promoting sales.
The MGETR extends to non-profit cultural organisations who maintain exhibitions, including local authority museums and charitable galleries.
David Watt, Chief Executive of Arts & Business Scotland said:
“After seeing the positive impact of tax reliefs for other creative industries, Arts & Business Scotland was delighted that the HMRC launched a tax relief for museums and galleries in 2017.
“We strongly support the HMRC’s objective of supporting the development of new public exhibitions and for encouraging exhibitions to tour, which can be a costly exercise.
“In the context of uncertainty around funding for the cultural sector, Arts & Business Scotland encourages all Scottish museums and galleries, no matter how small or geographically remote, to look into their eligibility for the tax relief.”
Arts & Business Scotland have been working in partnership with Scott-Moncrieff over the last three years through the development of a tax guide, training sessions and regular updates on tax reliefs and amendments that could benefit the arts and heritage sectors.
Kirsty Murray, Tax Director at accounting firm Scott-Moncrieff, said:
“The biggest challenge with this new tax relief is likely to be the take-up. As charities, so many museums and galleries do not pay corporation tax and consequently think that this does not apply to them. But it does – and they could be receiving substantial sums.