Gifts to the Nation Print
There is a scheme whereby HM Revenue & Customs accept artwork, or objects in lieu of Inheritance Tax, together with a further scheme in respect of pre-eminent artwork and objects which provide for an enhanced relief for the donor’s estate.
The government have now gone one step further by following its consultation and has introduced a scheme to encourage individuals to gift pre-eminent artwork and objects to the nation by granting tax relief on the value of the object donated. This called the Cultural Gifts Scheme.
Eligible donors include:
- Individuals acting in a private capacity who have a liability to UK income tax, or CGT; or
- Companies with a liability to UK corporation tax.
Qualifying donors are not liable to CGT or Inheritance Tax on the donation, and are entitled to tax relief of up to 30% of the fair market value in the case of individuals and 20% for companies.
Individuals may spread the tax relief over a maximum period of 5 tax years. Companies do not have the ability to spread the tax relief.