It was announced in yesterday's Autumn Statement that museums and galleries across the UK will benefit from a tax relief for permanent exhibitions.
The tax relief, which comes into effect from April 2017, will allow museums to make savings on the creative and set-up costs of their exhibitions. It will broaden the scope of the tax relief that was introduced in the 2016 budget, which only applied to temporary and touring exhibitions.
The chancellor Philip Hammond wrote in today’s Autumn Statement that the tax relief had been broadened to make it “accessible to a wider range of institutions across the country”.
The rates of relief will be set at 25% for touring exhibitions and 20% for non-touring exhibitions, and will be capped at £500,000 of qualifying expenditure per exhibition.
Relief is available on a maximum of 80% of qualifying expenditure, meaning museums and galleries will be able to claim up to £80,000 relief for a non-touring exhibition and £100,000 if the exhibition is toured.
CVAN welcomes these changes, as it will bring substantial positive financial benefits to the sector. The exhibition tax relief is expected to save the museum and gallery sector £30m a year from 2018 until it comes up for renewal in 2022.