The following Private Client guidance note provides comprehensive and up to date legal information covering:
The Acceptance in Lieu (AiL) scheme allows those who are liable to UK inheritance tax (IHT) to apply to settle the tax by offering property in full or part payment of the IHT liability. Objects must be pre-eminent fortheir national, scientific, historic or artistic interest and HMRC and the Secretary of State must agree to the application. As with other heritage property reliefs, the aim of the AiL scheme is to ensure that pre-eminent heritage assets are retained in the UK forthe public benefit rather than be sold to private dealers.Inheritance Tax Act 1984, ss 230–231
In common with the conditional exemption from IHT, the AiL scheme requires the heritage property to qualify and be designated as pre-eminent or otherwise be accepted by HMRC as qualifying forthe scheme.
Any of the following property may be accepted by HMRC in satisfaction of the whole or part of an IHT liability:IHTA 1984, ss 30, 230
any land (including any buildings on the land) as agreed with HMRCIHTA 1984, s 230(2)
any objects which are or have been kept in a particular building:IHTA 1984, s 230(3) and Sch 3
which has itself been accepted in satisfaction or part satisfaction of IHT
which (or any interest in which) belongs to the Crown, the Duchy of Lancaster, the Duchy of Cornwall or a government department (or is held forthe purposes of a government department)
of which the Secretary of State forDigital, Culture, Media and Sport is guardian under the Ancient Monuments and Archaeological Areas Act 1979 or the Department
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