Corporation Tax Act 2009 section 1218ZEA

Clawback of provisional relief

Section 1218ZEA deals with the clawback of museums and galleries exhibition tax relief that was claimed on a provisional basis, where it turns out that the UK expenditure condition is not ultimately met.

• If a company claimed provisional relief but it becomes apparent the UK expenditure condition will not be satisfied, the company loses its entitlement to relief and must amend its tax returns for all affected periods
• When the separate exhibition trade ceases, the company must file a final statement confirming the amount of core expenditure that qualifies as UK expenditure
• If the final statement shows the UK expenditure condition is not met, all relief — including any transfer of terminal losses — is denied for every period, and tax returns must be corrected
• HMRC can make any necessary amendments or assessments to enforce these clawback provisions regardless of normal time limits