New tax concessions for art donations
July 28 2011
The UK government is currently consulting on a plan to give tax concessions for donating works of art to the nation. At the moment, the only tax break you can get for giving your Rembrandt to a museum is when you're dead, under the Acceptance in Lieu (AIL) scheme.
Now, you will be able to donate the Rembrandt whilst you're alive, and get a tax concession not on your inheritance tax liability, but on your income tax.
You can take part in the consultation here. The government wants views on:
- who will be eligible to apply for the new scheme;
- how to define pre-eminent and how these objects will qualify for the new scheme;
- how acceptance of offers will work;
- which institutions will be eligible to receive objects;
- how objects should be allocated to institutions;
- what conditions should attach to objects allocated to institutions;
- how the tax reduction should be calculated, including the rate of reduction which should apply per donated object; and
- whether there should be a cap on the amount of tax reduction per object or per donor.