Cultural gifts scheme
This scheme encourages people to donate a pre-eminent work of art or heritage object to the nation (the same criteria as AIL apply) within their lifetime in exchange for a partial offset of their income, capital gains tax or corporation tax bill.
Acceptance in lieu
Acceptance in Lieu (AIL) is one of the UK’s most longstanding tax incentive schemes and gives people an opportunity to offset some or all of their inheritance tax, capital transfer tax or estate duty bill by offering a pre-eminent work of art to a public collection in lieu of payment. The scheme applies to works of art, manuscripts, heritage objects and historic documents. In addition items must be of "particular historical, artistic, scientific or local significance, either individually or collectively”.
““HM Revenue & Customers: “Due to certain tax benefits, a work of art offered under the Acceptance in Lieu scheme is worth 17% more to the offerer than if the item was sold at public auction””
Private treaty sales
This scheme applies to cases where a work of art or object would be liable for inheritance or capital gains tax if sold on the open market. A vendor can avoid this tax by selling privately to certain museums and galleries or organisations such as the National Trust.
Conditional exemption
Under the Conditional Exemption scheme, heritage assets such as buildings, land, works of art and other objects that qualify are exempt from inheritance or capital gains tax provided certain conditions are met. This arrangement allows for unique collections (such as the contents of country estates) to remain intact and not be dispersed or separated from their associated historic buildings.
