Textual Amendments
F1Pt. 15E inserted (for specified purposes and with effect in accordance with Sch. 6 paras. 20, 21(1)(a) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 1 (with Sch. 6 para. 21(3))
Modifications etc. (not altering text)
C1Pt. 15E modified by 2010 c. 4, s. 357UR(3) (as inserted (with effect in accordance with Sch. 6 para. 20 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 17)
C2Pt. 15E modified (temp.) (with application in accordance with s. 21(1)(4) of the amending Act) by Finance Act 2022 (c. 3), s. 21(1)(4)
(1)This Part is about the production of museum and gallery exhibitions, and applies for corporation tax purposes.
(2)This Chapter explains what is meant by “exhibition” and “touring exhibition” and how a company comes to be treated as the primary production company or a secondary production company for an exhibition.
(3)Chapter 2 is about the taxation of the activities of a production company and includes—
(a)provision for the company’s activities in relation to its exhibition to be treated as a separate trade, and
(b)provision about the calculation of the profits and losses of that trade.
(4)Chapter 3 is about relief (called “museums and galleries exhibition tax relief”) which may be given to a production company in relation to an exhibition—
(a)by way of additional deductions to be made in calculating the profits or losses of the company’s separate trade, or
(b)by way of a payment (a “museums and galleries exhibition tax credit”) to be made on the company’s surrender of losses from that trade,
and describes the conditions a company must meet to qualify for museums and galleries exhibition tax relief.
(5)Chapter 4 contains provision about the use of losses of the separate trade (including provision about relief for terminal losses).
(6)Chapter 5 provides—
(a)for relief under Chapters 3 and 4 to be given on a provisional basis, and
(b)for such relief to be withdrawn if it turns out that conditions that must be met for such relief to be given are not actually met.
(1)In this Part “exhibition” means a curated public display of an organised collection of objects or works (or of a single object or work) considered to be of scientific, historic, artistic or cultural interest [F2(but see subsections (2) to (3A))].
(2)F3... A display is not an exhibition if—
(a)it is organised in connection with a competition of any kind,
(b)its main purpose, or one of its main purposes, is to sell anything displayed or to advertise or promote any goods or services,
(c)it includes a live performance by any person,
(d)anything displayed is for sale, or
(e)anything displayed is alive.
(3)Subsection (2) does not prevent a display being an exhibition if it includes a live performance by a person which is merely incidental to, or forms a merely incidental part of, the collection displayed.
[F4(3A)A display of an object or work is not an exhibition to the extent that the public display of the object or work is subordinate to the use of the object or work (or of anything of which it forms part) for another purpose.]
(4)A display is “public” if the general public is admitted to it, whether or not the public is charged for admission.
(5)A display does not fall outside subsection (4) just because visitors other than the general public are admitted to it for a single session or a small number of sessions.
Textual Amendments
F2Words in s. 1218ZAA(1) inserted (1.4.2022 in relation to an exhibition only where the production stage begins on or after that date) by Finance Act 2022 (c. 3), s. 22(2)(a)(6)
F3Word in s. 1218ZAA(2) omitted (1.4.2022 in relation to an exhibition only where the production stage begins on or after that date) by virtue of Finance Act 2022 (c. 3), s. 22(2)(b)(6)
F4S. 1218ZAA(3A) inserted (1.4.2022 in relation to an exhibition only where the production stage begins on or after that date) by Finance Act 2022 (c. 3), s. 22(2)(c)(6)
(1)In this Part an exhibition is a “touring exhibition” if conditions A to E are met.
(2)Condition A is that—
(a)there is a primary production company for the exhibition (see section 1218ZAC), and
(b)the primary production company is within the charge to corporation tax.
(3)Condition B is that the primary production company intends, when planning the exhibition, that conditions C, D and E should be met in relation to it.
(4)Condition C is that the exhibition is held at two or more venues.
(5)Condition D is that at least 25% of the objects or works displayed at the first venue at which the exhibition is held are also displayed at every subsequent venue at which the exhibition is held.
(6)Condition E is that the period between the deinstalling of the exhibition at one venue and the installation of the exhibition at the next venue does not exceed 6 months.
(1)In this Part a company is the primary production company for an exhibition if the company (acting otherwise than in partnership) meets conditions A and B.
(2)Condition A is that the company—
(a)makes an effective creative, technical or artistic contribution to the exhibition, and
(b)directly negotiates for, contracts for and pays for rights, goods and services in relation to the exhibition.
(3)Condition B is that—
(a)where the exhibition is held at just one venue, the company is responsible for the production of the exhibition at that venue;
(b)where the exhibition is held at two or more venues, the company is responsible for the production of the exhibition at [F5one or more] of those venues.
(4)For the purposes of this section and section 1218ZAD, a company is responsible for the production of the exhibition at a venue if—
(a)it is responsible for producing and running the exhibition at the venue,
(b)where the exhibition is at the venue for a limited time, it is responsible for deinstalling and closing the exhibition at the venue, and
(c)it is actively engaged in decision-making in relation to the exhibition at the venue.
(5)If more than one company meets conditions A and B in relation to the production of the exhibition, the company that most directly meets those conditions is the primary production company for the exhibition.
(6)If no company meets conditions A and B in relation to the production of the exhibition, there is no primary production company for the exhibition.
Textual Amendments
F5Words in s. 1218ZAC(3)(b) substituted (1.4.2022 in relation to an exhibition only where the production stage begins on or after that date) by Finance Act 2022 (c. 3), s. 22(3)(6)
(1)If an exhibition is held at two or more venues, there may be one or more secondary production companies for the exhibition.
(2)In this Part a company is the secondary production company for an exhibition at a venue if the company meets conditions C and D.
(3)Condition C is that the company (acting otherwise than in partnership) is responsible for the production of the exhibition at the venue.
(4)Condition D is that the company is not the primary production company.
(5)If more than one company meets conditions C and D in relation to the production of the exhibition at the venue, the company that is most directly responsible for the production of the exhibition at the venue is the secondary production company for the exhibition at the venue.
(6)If no company meets conditions C and D in relation to the production of the exhibition at the venue, there is no secondary production company for the exhibition at the venue.]