Gifts of art to the nation
Produced in partnership with Robert Brodrick and Emily Hewlett of Payne Hicks Beach Solicitors
Gifts of art to the nation

The following Private Client guidance note Produced in partnership with Robert Brodrick and Emily Hewlett of Payne Hicks Beach Solicitors provides comprehensive and up to date legal information covering:

  • Gifts of art to the nation
  • Other tax reliefs designed to preserve our national heritage in addition to GNS
  • Background and commencement date of the GNS
  • Who can benefit from the GNS
  • The gift under the GNS
  • The eventual donee institution
  • The relief under the GNS
  • The GNS in practice, in seven steps
  • Related tax issues
  • The GNS so far

With the aim of encouraging lifetime philanthropic giving, the government introduced provisions in the Finance Act 2012 (FA 2012), whereby donors who give pre-eminent property to appropriate institutions during their lifetime receive a reduction in their UK tax liability. The reduction in tax liability is based on a percentage of the value of the donated object.

For the avoidance of doubt, it should be highlighted that the scheme was originally referred to as 'Gifts of pre-eminent objects and works of art to the nation'; the Department for Digital, Culture, Media and Sport (DCMS) guidance, both in December 2011 before FA 2012 came into force and their separate guidance when the scheme was eventually launched, referred to it as the 'Cultural Gifts Scheme'. However, the Schedule in FA 2012 is called 'Gifts to the Nation'. In this Practice Note, it is referred to as the Gifts to the Nation Scheme (GNS).

Other tax reliefs designed to preserve our national heritage in addition to GNS

  1. section 30 of the Inheritance Tax Act 1984 (IHTA 1984)—conditional exemption enables an inheritance tax (IHT) liability to be deferred on certain qualifying heritage assets. The claim for the conditional exemption can be made on chargeable lifetime transfers, failed potentially exempt transfers and transfers of value on death.

    The asset must be deemed by HM Treasury to be

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