Saffery Champness has welcomed the announcement by Government this week of a new lifetime giving incentive allowing individuals and companies to donate pre-eminent objects during their lifetime
New lifetime cultural giving scheme is a significant step in the right direction, says Saffery Champness
Saffery Champness has welcomed the announcement by Government this week of a new ‘lifetime giving’ incentive allowing individuals and companies to donate pre-eminent objects during their lifetime in return for a reduction in their income, corporation and capital gains tax liabilities. The scheme will fund tax reductions up to an annual limit of £30 million.
The new Cultural Gifts Scheme (CGS) that commences on 1 April is intended to encourage gifts and donations of treasures to the nation. It will complement the existing Acceptance in Lieu (AIL) Scheme, which will continue to fund payments of inheritance tax through the transfer to the nation of important works of art, and will now share in the annual £30 million budget.
The AIL Panel of the Arts Council will advise whether an object meets the ‘pre-eminent’ criteria, and if so agree a valuation with the donor. The Panel will then make a recommendation to the Culture Minister in the relevant national or devolved administration.
IF THE GIFT is accepted then, with advice from the AIL Panel, it will be assigned to an eligible museum or gallery for the enjoyment of the public. And where the donor has expressed a wish that it be allocated to a particular institution, and the Minister has agreed, the object will be transferred to that institution.
Mick Downs, Consultant on National Heritage and Capital Taxes at UK top 20 Chartered Accountant Saffery Champness says:
“We welcome the launch of this scheme as it adds considerably to the existing opportunities for individuals or companies to donate treasures to the nation in return for a reduction in their tax liability.
“Some would say it does not go far enough. But we see it as a significant step in the right direction crucially allowing the philanthropic donation of major works during the lifetime of the donor with the potential to provide very considerable benefit both to the donor and to the nation.
“I am sure there will be significant interest from those who find themselves in a position to make such gifts and who now can accrue a substantial tax benefit by doing so.”