Reforming the Cultural Gift Scheme
Published 13 July 2026
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This publication is available at https://www.gov.uk/government/publications/cultural-gift-scheme-reform/reforming-the-cultural-gift-scheme
Who is likely to be affected
UK museums and galleries who are eligible to receive donations via the Cultural Gift Scheme, and individuals and companies who wish to donate eligible objects through the scheme.
General description of the measure
The measure amends Schedule 14 of the Finance Act 2012 by removing the restriction on joint ownership of objects for the Cultural Gift Scheme, so that joint owners can each claim relief on their share of the object. It also allows donors one opportunity within the five-year limit period to amend their remaining tax credit allocation.
Policy objective
This measure improves the flexibility and accessibility of the Cultural Gift Scheme to further boost donations via the scheme and help bolster the collections of UK galleries and museums.
Background to the measure
The Cultural Gift Scheme was introduced to allow UK taxpayers to donate important works of art and other heritage objects to be held for the benefit of the public or the nation. Individuals receive a tax credit equal to 30% of the value of the item donated and companies receive 20%. Donors must agree with HMRC how they intend to use the credit over a five-year period. The scheme shares a budget with the Acceptance in Lieu scheme, with a budget of £40 million per annum treated as tax foregone.
Detailed proposal
Operative date
The measure will take effect from 6 April 2027.
Current law
The Cultural Gift Scheme was introduced by Schedule 14 to the Finance Act 2012 and commenced on 1 April 2013. Parts 1 to 4 of that Schedule set out when the tax reduction applies, how it applies to individual and corporate donors, and general provisions. Part 5 aligns the Acceptance in Lieu scheme through amendments to the Inheritance Tax Act 1984.
Proposed revisions
The measure introduces legislative amendments to remove the restriction on joint ownership of objects and to allow donors one opportunity within the five-year limit period to amend their remaining tax credit allocation.
Summary of impacts
Exchequer impact (£ million)
| 2025 to 2026 | 2026 to 2027 | 2027 to 2028 | 2028 to 2029 | 2029 to 2030 | 2030 to 2031 |
|---|---|---|---|---|---|
| — | — | Negligible | Negligible | Negligible | Negligible |
This measure is expected to have a negligible impact on the Exchequer.
Economic impact
This measure is not expected to have any significant macroeconomic impacts.
Impact on individuals, households and families
This measure will impact individuals who wish to donate important works of art and other heritage objects to be held for the benefit of the public or the nation, by removing the restriction on joint ownership of objects for the Cultural Gift Scheme, so that joint owners can each claim relief on their share of the object. It also allows donors one opportunity within the five-year limit period to amend their remaining tax credit allocation.
The measure is not expected to impact individuals’ experience of dealing with HMRC as it does not change or introduce any tax administration processes or obligations. There is expected to be no impact on family formation, stability or breakdown.
Equalities impacts
This measure may apply to individuals regardless of their protected characteristics. HMRC does not currently hold data on the protected characteristics of individuals impacted by this measure and so cannot assess if there are any disproportionate impacts to protected groups.
Administrative impact on business including civil society organisations
This measure will have a negligible administrative impact on museums and art galleries, and on businesses and civil society organisations that wish to donate important works of art and other heritage objects, by removing the restriction on joint ownership of objects for the Cultural Gift Scheme so that joint owners can each claim relief on their share of the object. It also allows donors one opportunity within the five-year limit period to amend their remaining tax credit allocation.
One-off costs will include familiarisation with the measure. There are expected to be no ongoing costs. Some museums and art galleries may see a modest increase in objects and artwork donated to them.
The measure is not expected to impact businesses’ experience of dealing with HMRC as it does not change or introduce any tax administration processes or obligations.
Operational impact (£ million) (HMRC or other)
HMRC may incur minor administrative costs to update guidance and compliance systems but does not anticipate significant additional resource needs.
Other impacts
Other impacts have been considered and none have been identified.
Monitoring and evaluation
The impact of this measure will be monitored through ongoing analysis of tax relief trends among UK charities and the Arts Council, who oversee the scheme.
Further advice
If you have any questions about this change, contact Jake Botham at email: jake.botham@hmrc.gov.uk.