Christie’s Bulletin for Professional Advisers
Heritage news
Ruth Cornett Director, Christie’s Heritage and Taxation Advisory Service
A new year, a new decade and perhaps the
can be set against a tax liability. The uptake
start of new a environment for heritage
of the scheme, as a consequence, tends to
in the UK. During the next few months,
be among lower value objects, where the
the landscape for heritage advice and the
value that is not reflected in the tax credit,
cultural sector may change significantly as
feels less punitive. Should amendments to
the negotiations for the terms of trading
the cultural gift scheme give a tax credit
with the EU take place. At the moment, it
that matches the tax credit available under
is still too soon to say how leaving the EU
the AIL scheme, which is frequently in the
will affect the heritage sector and the art
region of 70%, the cultural gifts scheme
market, but we are watching developments
would inevitably attract more interest.
closely and will be reporting on this issue as soon as there is clarity about it.
Of the 46 cases settled in the year, 33 related to the offer in lieu scheme (satisfying £33.6
New director for the Art Fund
million of tax) and 13 (satisfying £546,000 of
In the UK, the Art Fund has announced
tax) to the cultural gifts scheme. Highlights
the appointment of a new director, Jenny
of the year included the painting by Bellotto,
Waldman, who is to replace Stephen
The Bucintoro at the Molo on Ascension
Deuchar in April. Jenny Waldman, who led
Day, which satisfied £7 million of IHT and
14–18 NOW, the official arts programme
will remain at Audley End, and a pair of
to commemorate the first world war,
Chippendale pier tables and pier glasses
will join the national art charity in April.
offered in lieu in situ (to remain at Harewood
She replaces Stephen Deuchar, who is
House, but in the ownership of the Victoria
stepping down after a decade in the role.
and Albert Museum) which satisfied £5.6
The Art Fund is a key supporter of the
million of IHT. The importance of the scheme
UK’s museum and arts sector, running a
in keeping key works of art in their historic
range of funding programmes for curatorial
settings cannot be overstated. Both of these
work, loans and acquisitions, as well as
cases were negotiated through Christie’s
managing the annual £100,000 Museum
and gave the former owners satisfaction
of the Year prize. In recent years, the Art
in seeing the objects retained in the most
Fund has raised questions about the
appropriate settings, while generating
export licensing rules and procedures in
tax-efficient solutions for those owners.
the UK and it will be interesting to see
The AIL scheme continues to be popular
whether it continues to focus on this area.
and successful in matching the wishes of donors with the ambitions of institutions,
Acceptance in lieu report
museums and galleries to augment their
The annual report for 2019 of the Acceptance
collections and, in some cases, to strike up
in Lieu Panel, which considers offers in lieu
new relationships with partner institutions.
of inheritance tax and cultural gifts, has been
Congratulations to the acceptance in
published recently. This was the first year in
lieu panel and its secretariat at the Arts
which the value of the objects offered settled
Council for another successful year and
over £30 million in tax. The gross offer
the continuation of this important work.
value was also the highest amount, at £58.6
2
million. Cultural gifts which settle liabilities to
Changes to public institutions
income, capital gains and corporation tax are
The Wallace Collection in London is well-
increasingly popular, but the most significant
known for its outstanding collection of
deterrent to this scheme is the maximum
painting, furniture and the decorative arts
value (30% of the gross offer value), which
collected by the Marquesses of Hertford and
