Heritage property—the conditional exemption
Heritage property—the conditional exemption

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Heritage property—the conditional exemption
  • Conditions for exemption to apply
  • What property may qualify for conditional exemption?
  • Undertakings
  • How to claim the exemption
  • Time limits and restrictions on the conditional exemption
  • Interaction with other taxes
  • Cessation of the conditional exemption and the charge to IHT
  • Loss, theft, damage or destruction of conditionally exempt heritage property
  • Other exemptions and reliefs for heritage property
  • More...

Coronavirus (COVID-19): HMRC has published guidance regarding the relaxation of rules requiring public access to conditionally exempt property during the coronavirus pandemic. See: What is the guidance for owners of conditionally exempt heritage property who are unable to allow public access due to coronavirus (COVID-19)? and Coronavirus (COVID-19): HMRC guidance on capital taxation and tax-exempt heritage assets, LNB News 29/04/2020 49. For updates on key developments and related practical guidance on the implications of coronavirus for practitioners, see: Coronavirus (COVID-19) and Private Client—overview and Coronavirus (COVID-19) toolkit.

Conditional exemption from inheritance tax (IHT) on a transfer of value of a qualifying asset is available at the discretion of the Treasury (assessed via the appropriate body, currently the Arts Council England). The aim, as with many of the heritage property reliefs, is to help ensure that pre-eminent heritage assets are retained in the UK and protected for the benefit of the nation as a whole rather than sold to private dealers. In order for a transfer to be conditionally exempt, certain conditions must be met and the owner (or other relevant person) must give undertakings that the item will be maintained and that reasonable public access will be arranged.

Conditions for exemption to apply

In order for the conditional exemption to apply, certain conditions must be met:

  1. the property transferred must qualify (and be designated by the appropriate

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