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HMRC internal manual

Capital Gains Manual

National heritage: section 258(2)(a) TCGA: exemption for sales by private treaty to museums etc


Section 258(2)(a) TCGA gives an exemption from Capital Gains Tax on the disposal of:

  • an asset in respect of which an inheritance tax undertaking under Section 31 Inheritance Tax Act 1984 has been, or could be, given, if
  • the disposal is a sale by private treaty, or otherwise than by sale, to
  • one of the bodies listed in Schedule 3 Inheritance Tax Act 1984, see IHTM11224.

If the disposal is a sale the restriction to sales by private treaty means the exemption does not apply to sales at auction. In practice the price paid by the public body will normally be reduced so as to share the benefit of Capital Gains Tax saved with the acquiring body. See CG73340. For disposals before 6 April 2009 the exemption is given by concession if there has been no prior grant of conditional Inheritance Tax or Estate Duty exemption provided that the price paid by the public body is reduced to share the benefit of the Capital Gains Tax exemption. See CG73340.