Tax cap could jeopardise major building projects
Government plan could create cash shortfall for schemes such as V&A and Tate extensions
The government’s plans to cap tax relief on charitable donations could have an impact on large building projects at the Victoria and Albert Museum (V&A) and the Design Museum.
In his March budget, George Osborne announced proposals to restrict the tax relief on charitable giving to a maximum of £50,000, or a quarter of a donor’s income if that is greater.
Last month, however, the Art Newspaper reported that key capital projects may be jeopardised by the proposed tax change.
These include the £215m extension to Tate Modern (which still needs £54m), the £135m British Museum extension (£15m short), the development of the £80m Design Museum in Kensington (£18m short), and the V&A’s £45m Dundee outpost (£30m short) and £40m extension in Exhibition Road (£25m short).
“The impact would be most keenly felt on major gifts for capital projects such as the Exhibition Road Building Project,” said a spokeswoman for the V&A, referring to the underground gallery due for completion by 2015.
“This may tangibly impact on our ability to deliver major projects, which have in the past 10 years, contributed to a trebling of our visitor figures.
“It is [also] a key concern that recent major pledges to the V&A may be at risk should the tax relief cap proposal be implemented.”
The Design Museum also fears that its move to the Commonwealth Institute in High Street Kensington by 2014 may be at risk.
“It could have an adverse impact on our ambition to create the leading museum of design and architecture in London,” said a spokesman.
Meanwhile, a British Museum spokeswoman said that she was not aware of any immediate impact on funding for the World Conservation and Exhibition Centre, which is set to open in 2014. But she warned that the tax relief proposal may affect such funding in the future.
A spokesman for the V&A at Dundee said the cap hadn’t had an effect so far. “But we are still relatively early in the private fundraising process, which accounts for a projected £15m of the £45m budget,” he added.
In his March budget, George Osborne announced proposals to restrict the tax relief on charitable giving to a maximum of £50,000, or a quarter of a donor’s income if that is greater.
Last month, however, the Art Newspaper reported that key capital projects may be jeopardised by the proposed tax change.
These include the £215m extension to Tate Modern (which still needs £54m), the £135m British Museum extension (£15m short), the development of the £80m Design Museum in Kensington (£18m short), and the V&A’s £45m Dundee outpost (£30m short) and £40m extension in Exhibition Road (£25m short).
“The impact would be most keenly felt on major gifts for capital projects such as the Exhibition Road Building Project,” said a spokeswoman for the V&A, referring to the underground gallery due for completion by 2015.
“This may tangibly impact on our ability to deliver major projects, which have in the past 10 years, contributed to a trebling of our visitor figures.
“It is [also] a key concern that recent major pledges to the V&A may be at risk should the tax relief cap proposal be implemented.”
The Design Museum also fears that its move to the Commonwealth Institute in High Street Kensington by 2014 may be at risk.
“It could have an adverse impact on our ambition to create the leading museum of design and architecture in London,” said a spokesman.
Meanwhile, a British Museum spokeswoman said that she was not aware of any immediate impact on funding for the World Conservation and Exhibition Centre, which is set to open in 2014. But she warned that the tax relief proposal may affect such funding in the future.
A spokesman for the V&A at Dundee said the cap hadn’t had an effect so far. “But we are still relatively early in the private fundraising process, which accounts for a projected £15m of the £45m budget,” he added.