A new “lifetime giving” initiative offering tax reductions to individuals or companies that donate works of art to the nation came into effect last month. Arts Council England will administer the Cultural Gifts Scheme, under which 30% of the agreed value of the object can be set against the donor’s income or capital gains tax.
The tax relief can be spread across a maximum of five tax years, starting from the year when the offer is registered. Companies will be given a relief of 20% of agreed value to offset against corporation tax.
The Cultural Gifts Scheme and Acceptance in Lieu, which offers inheritance tax discounts in exchange for bequests, will have a combined annual limit of £30m, rather than the £20m initially proposed by the government.
The Cultural Gifts Scheme guidelines stress that objects will be accepted only “on a first-come, first-served basis”.
“While an applicant may express a wish for an object to go to a particular institution, the [Acceptance in Lieu] panel will also take overall account of the regional spread of allocations, particularly outside of London, to ensure that regional museums and galleries are well supported,” added the guidelines.
David Anderson, director general of Amgueddfa Cymru – National Museum Wales and the new president of the Museums Association, said: “As a national institution, we would hope that Amgueddfa Cymru would be well placed to be a recipient of a cultural gift, which would help to grow Wales’ national collections, especially at a time when we, like many other museums, depend more and more on the support of partners and others to add to collections.”
The tax relief can be spread across a maximum of five tax years, starting from the year when the offer is registered. Companies will be given a relief of 20% of agreed value to offset against corporation tax.
The Cultural Gifts Scheme and Acceptance in Lieu, which offers inheritance tax discounts in exchange for bequests, will have a combined annual limit of £30m, rather than the £20m initially proposed by the government.
The Cultural Gifts Scheme guidelines stress that objects will be accepted only “on a first-come, first-served basis”.
“While an applicant may express a wish for an object to go to a particular institution, the [Acceptance in Lieu] panel will also take overall account of the regional spread of allocations, particularly outside of London, to ensure that regional museums and galleries are well supported,” added the guidelines.
David Anderson, director general of Amgueddfa Cymru – National Museum Wales and the new president of the Museums Association, said: “As a national institution, we would hope that Amgueddfa Cymru would be well placed to be a recipient of a cultural gift, which would help to grow Wales’ national collections, especially at a time when we, like many other museums, depend more and more on the support of partners and others to add to collections.”