Guidance

Capital taxation and tax-exempt heritage assets

Guidance on Inheritance Tax exemptions and reliefs policy, and Capital Gains Tax reliefs policy for national heritage property.

Documents

Capital taxation and the national heritage

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Details

To preserve and protect national heritage for the benefit of the public, the government introduced the Conditional Exemption Tax Incentive Scheme.

Buildings, land, works of art and other objects that qualify under the scheme are exempt from Inheritance Tax and Capital Gains Tax as long as certain conditions are met.

Temporary changes to the scheme due to coronavirus (COVID-19)

The UK is experiencing the effects of the coronavirus pandemic. Due to the impact of the virus, events are changing quickly and we are keeping the guidance under review in line with variations across the UK.

We understand that it may not be possible for owners of properties or assets in the Conditional Exemption Tax Incentive Scheme to meet all their undertakings due to coronavirus. The following guidance explains how we will deal with these cases.

Closing or delaying the opening of your property

You should follow the relevant public health authority’s social distancing guidance if you are the owner of a national heritage property.

We will not consider that you have broken your agreement with us if you are an owner of a national heritage property who closes it, or delays its opening to 1 August 2021. This will apply even if it means you will miss some of the period covered by your agreement, or you do not open at all until 1 August 2021.

From 1 August 2021, we will not consider that you have broken your agreement with us if you cannot provide reasonable public access to your property when following guidance on social distancing. We will consider temporary adjustments to your agreement on an individual basis, such as limiting visitor numbers or closing rooms.

If some or all of the period during which your property is normally open to the public falls before 1 August 2021 we will not consider that you have broken your agreement with us if your property is not open for the full number of days required under your agreement. This will apply even if it means you do not open at all in 2021.

Objects on loan to other organisations that close due to government advice

If a conditionally exempted object is on loan to a museum, gallery or other venue which closes we will not treat the withdrawal of public access to the object as if you have broken your agreement with us.

This will apply even if it means the object is not on show at all until 1 August 2021.

Objects that can only be seen by appointment

If an object can only be seen by appointment then we will not expect you to agree to an appointment until the government’s advice allows you to do so, and you will not have broken your agreement with us.

Advertising, publicity and promotional material

We understand that you may have difficulty producing publicity or promotional material, and this may be a requirement of the terms of your agreement with us.

If you cannot produce this material we will not consider that you have broken your agreement.

We have no objection if you include information in any of your advertising or publicity that states the opening of your property may be subject to change or cancellation, depending on the developing circumstances.

Published 27 November 2013
Last updated 14 June 2021 + show all updates
  1. This guide has been updated to reflect the coronavirus (COVID-19) easement for heritage assets.

  2. Temporary changes to the scheme due to coronavirus (COVID 19) have been extended until July 2021.

  3. Temporary changes to the scheme due to coronavirus (COVID 19) have been extended until April 2021.

  4. The guidance on calculating the special price in Acceptance in Lieu cases where the 36% reduced rate of Inheritance Tax applies has been updated.

  5. Information about social distancing if you are the owner of a national heritage property has been updated.

  6. Information has been added about temporary changes to the Conditional Exemption Tax Incentive Scheme, due to coronavirus (COVID-19).

  7. An updated version of Capital taxation and the national heritage has been added.

  8. Guidance on the ‘Conditional Exemption Tax Incentive Scheme’ has been updated.

  9. The guidance on capital taxation and the national heritage has been updated.

  10. First published.