Acceptance in Lieu increased to £30m a year

Patrick Steel, 29.11.2011
But budget statement is gloomy reading for museums
Chancellor George Osborne’s autumn statement, announced today, will see an increase from £20m to £30m in the limit on tax offset by donations under the Acceptance in Lieu scheme.

Paragraph 2.35 of the statement states: “At Budget 2011, the government announced that it would consult on proposals to encourage donations of pre-eminent works of art or historical objects to the nation in return for a tax reduction.

“Following consultation, the government will legislate to enable individuals to receive a reduction in their income tax or capital gains tax liabilities, and companies to receive a reduction in their corporation tax liabilities, in return for donating pre-eminent objects under this new scheme.

“Total tax reductions under this scheme, and taxes offset under the existing inheritance tax Acceptance in Lieu scheme, will be subject to an increased annual limit of £30m a year overall.”

The government will be publishing more details on the scheme on 6 December.

The chancellor also announced a 1% cap on public sector pay rises for two years following the current freeze until the end of 2012, a review into regional pay adjustments, and a change in pensionable age to 67 to be brought forward to 2026 from 2034.

Museums Association director Mark Taylor said: “The changes to the Acceptance in Lieu scheme are encouraging, but one can only be fearful for how much further tightening of public expenditure will affect museums. In the big picture, things are not looking better for museums.”

For the MA's view on tax incentives, click here

To read the statement in full, please click here (Treasury website)

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