The government will consult this year on proposals to encourage donations of pre-eminent works of art or historical objects to the nation in return for a tax reduction.
The proposals, which are part of a tax initiative package announced by chancellor George Osborne in the March budget aimed at boosting cultural philanthropy, were welcomed by the Art Fund.
“Currently, individuals in the UK are better off waiting until after death to give a work of art to the nation, as it can then be offset against inheritance tax,” the charity said in a statement.
“But there is nothing to encourage the lifetime donation of art.”
The Art Fund has forwarded a proposal to the Treasury that involves extending the Acceptance in Lieu scheme, which allows public collections to acquire works of art in settlement of inheritance tax, to income tax and capital gains tax.
Osborne will also reduce the rate of inheritance tax by 10% for estates leaving 10% or more to charity from April 2012, a move that he says could result in a cash injection of about £300m.
Charities will be able to claim Gift Aid tax relief on up to £5,000 of small donations annually, usually raised through collection tins, without the need for Gift Aid declarations.
The chancellor also increased the Gift Aid benefit limit from £500 to £2,500, boosting the amount organisations can spend on thanking donors.
Mark Jones, director of the Victoria and Albert Museum, said: “I welcome the budget announcement of a new incentive to leave money to charities.
“This is an excellent opportunity to make people more aware of the good they can do by leaving money and a reminder of the need to thank and value those who have pledged a legacy.”
In December, as part of the Philanthropy in the Arts Agenda, the Department for Culture, Media and Sport and Arts Council England announced plans to invest £80m in a series of match-fund schemes designed to raise an equivalent amount or more from private donors.
A subsequent consultation undertaken by the thinktank Arts Quarter, which canvassed more than 600 employees in the cultural sector, highlighted the “urgent need to effectively reform the UK tax system”.
Fifty per cent of respondents also felt that “it could take at least 10 to 20 years to see the desired uplift in philanthropy in the arts”.
The proposals, which are part of a tax initiative package announced by chancellor George Osborne in the March budget aimed at boosting cultural philanthropy, were welcomed by the Art Fund.
“Currently, individuals in the UK are better off waiting until after death to give a work of art to the nation, as it can then be offset against inheritance tax,” the charity said in a statement.
“But there is nothing to encourage the lifetime donation of art.”
The Art Fund has forwarded a proposal to the Treasury that involves extending the Acceptance in Lieu scheme, which allows public collections to acquire works of art in settlement of inheritance tax, to income tax and capital gains tax.
Osborne will also reduce the rate of inheritance tax by 10% for estates leaving 10% or more to charity from April 2012, a move that he says could result in a cash injection of about £300m.
Charities will be able to claim Gift Aid tax relief on up to £5,000 of small donations annually, usually raised through collection tins, without the need for Gift Aid declarations.
The chancellor also increased the Gift Aid benefit limit from £500 to £2,500, boosting the amount organisations can spend on thanking donors.
Mark Jones, director of the Victoria and Albert Museum, said: “I welcome the budget announcement of a new incentive to leave money to charities.
“This is an excellent opportunity to make people more aware of the good they can do by leaving money and a reminder of the need to thank and value those who have pledged a legacy.”
In December, as part of the Philanthropy in the Arts Agenda, the Department for Culture, Media and Sport and Arts Council England announced plans to invest £80m in a series of match-fund schemes designed to raise an equivalent amount or more from private donors.
A subsequent consultation undertaken by the thinktank Arts Quarter, which canvassed more than 600 employees in the cultural sector, highlighted the “urgent need to effectively reform the UK tax system”.
Fifty per cent of respondents also felt that “it could take at least 10 to 20 years to see the desired uplift in philanthropy in the arts”.