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Capital taxes exemptions for national heritage assets

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HMRC has updated its guidance on the capital taxes exemptions for ‘pre-eminent’ national heritage property, including the conditional IHT exemption and the acceptance-in-lieu scheme.

HMRC has updated its guidance on the capital taxes exemptions for ‘pre-eminent’ national heritage property, including the conditional IHT exemption and the acceptance-in-lieu scheme.

Conditional exemption from IHT and CGT may be claimed where pre-eminent heritage assets are transferred, provided the owner gives undertakings to keep the assets in the UK and secure reasonable public access to them.

The acceptance-in-lieu scheme enables taxpayers to transfer works of art and other heritage objects into public ownership in full or part-payment of IHT.

The revised memorandum ‘Capital taxation and the national heritage’ (see http://bit.ly/2diGcWE) incorporates changes up to 2011, including legislation in SI 2009/730 to replace former ESCs, covering:

  • certain foreign-owned works of art, etc. being excluded property for IHT (former ESC F7);
  • decorations awarded for valour being excluded property for IHT (former ESC F19); and
  • exclusion from CGT charge for certain disposals of conditionally exempt property by private treaty to a body within IHTA 1984 Sch 3, or in lieu of IHT (under an unnumbered concession). The legislation is now contained in TCGA 1992 s 258 and includes disposals by companies.

The revised guidance does not cover changes introduced in Finance (No 2) Act 2015 s 12 (exemption from ten-yearly charge for heritage property), allowing trustees of relevant property trusts two years after the 10-year anniversary to make their claim for conditional exemption; and Finance Act 2016 s 96 (IHT on gifts for national purposes, etc.), on the interaction of estate duty and IHT and collections previously maintained by local authorities.

Issue: 1327
Categories: News
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