HMRC’s Acceptance in Lieu scheme allows art and items of cultural significance to be transferred into public ownership in lieu of an Inheritance Tax or Capital Gains Tax liability. Works of art and historical items donated under the scheme are distributed among museums and galleries that are open to the public.
The 2019/20 Report, prepared by Arts Council England, highlighted the record £64.5 million worth of art and other items of cultural significance which were donated to museums and galleries in lieu of Inheritance Tax and Capital Gains Tax liabilities. These included a portrait by the impressionist painter Édouard Manet, etchings by Rembrandt, and a collection of antique pianos.
The scheme was used to settle £40 million worth of Inheritance Tax and Capital Gains Tax in 2019/20 – a tax saving which benefits not only the donors’ estates, but also the general public who gain access to items of cultural significance which might otherwise have remained in private collections.
If you would like to speak to a solicitor about Inheritance Tax or Capital Gains Tax, please contact Kerri Woodrow or Katherine Hague.