C3.1904 CGT reliefs and deferrals—gifts of pre-eminent objects to the nation
FA 2012 introduced a scheme to stimulate lifetime giving by encouraging taxpayers to donate pre-eminent objects, or collections of objects, to the nation1. Following the donation which includes the transfer of title to the relevant minister, the objects may then be loaned or given by the minister to appropriate institutions, including certain charities and accredited museums, for safe-keeping and to provide public access. In return, transferors will receive a reduction in their UK tax liability based on a percentage of the value of the object they are donating. There is, however, no guarantee that the offer of the pre-eminent object will be accepted2.
Where an individual, other than a trustee or personal representative3, makes a qualifying gift, a portion of that individual's income or capital gains tax liability for up to five tax years is treated as paid either when due, or if later, on the date when the offer was registered in accordance with the scheme (the offer registration date4)5. The tax years for which the tax is to be treated as paid must be identified in the terms on which acceptance is agreed (the agreed terms6), and each one must be either the tax year in which the offer registration date falls, or one of the four following years7.
A qualifying gift is made when8:
• the person offers to give pre-eminent property to be held for the benefit of the public or the nation
• the person is