The measure
As announced in Autumn Statement 2017, the government will introduce a new tax relief for museums and galleries who develop new exhibitions. Following consultation on the draft legislation, the relief will be revised to include exhibitions which have a live performance as part (but not the main focus) of the exhibition.
Who will be affected?
Museums and galleries that are subject to corporation tax and operating on a not-for-profit basis, including trading subsidiaries of charitable museums. The relief will not apply to commercial businesses.
When?
The relief will apply to qualifying expenditure incurred on or after 1 April 2017. The relief will expire in 2022 unless renewed, and will be reviewed in 2020.
Our view
Museums and galleries will be pleased that the new tax relief, which is expected to provide £35 million per year in support to the sector, will be introduced from 1 April 2017 as planned.
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