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.

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