MGETR20020 - Museums and Galleries Exhibition Tax Relief: Making a claim: CT600
The production company should indicate that it is claiming Museums and Galleries Exhibition Tax Relief (MGETR) using the software with which it is submitting its return. Returns must be filed online. It should complete the relevant boxes below:
| Description | CT600 box number |
|---|---|
| Tax due | 525 |
| Creatives tax credit | 540 |
| Amount claimed | 545 |
| Amount payable | 570 |
| Creatives core expenditure (not supported by all software) | 663 |
| Creatives additional deduction | 665 |
| Enhanced expenditure | 670 |
| Payable creatives tax credit | 885 |
Please note that CT600 Version 1 does not provide the relevant boxes needed to claim MGETR. CT600 Version 2 can only be used for accounting periods starting before 1 April 2015.
The company should also tick box 658 to confirm it has completed an additional information form..
Example
A production company incurs total expenditure of £250k on a qualifying exhibition. Of this expenditure, £200k is core expenditure. £150k (75%) of that core expenditure is UK expenditure and £50k (25%) is non-UK expenditure. The company is entitled to the following deductions:
- £250k 'ordinary' deduction for all the expenditure incurred in the separate exhibition trade, plus
- £150k additional deduction (the core UK expenditure is less than 80% of £250k, so it all qualifies)
giving a total deduction of £400k. See Chapter 7 for more details of the calculation.
The company has profits of £50k before tax, meaning it has a loss of £100k after the additional deduction. It decides to surrender this loss in full. The applicable credit rate (see MGETR10090) is 45%, giving a tax credit of £45k.
When completing the CT600P:
Total core expenditure for the accounting period is £200k. This amount should be entered in box P300A.
UK core expenditure for the accounting period is £150k. This amount should be entered in box P300B.
The additional deduction for the accounting period is £150k. This amount should be entered in box P300C.
The loss surrendered for the accounting period is £100k. This amount should be entered in box P300D.
The amount of tax credit for the accounting period is £45k. This amount should be entered in box P300E.
Note: if the company was claiming tax relief for multiple exhibitions, the combined figures across all exhibitions should be included in boxes P300A to P300E.
The CT600P then calculates the amount of credit used to discharge tax liabilities in box P325, and the payable credit amount in box P330. The company has no outstanding liabilities, so P325 equals 0 and P330 equals the full tax credit amount of £45k.
When completing the CT600:
Box 540 must equal box P325. This then feeds into boxes 545 and 570.
The company has not received any surrendered expenditure credit from a fellow group company, so it does not need to use box 614.
The company should tick box 658 to confirm it has completed an additional information form.
Box 663 must equal box P310.
Box 665 must equal box P315.
Box 885 must equal box P330.
See HMRC's guide for more information about the CT600 form.