Exemptions: conditional exemption
Sections IHTA84/S30 to IHTA/S35 give effect to the general policy of allowing conservation of items of national heritage by enabling transfers of value (IHTM04024) to be conditionally exempted to the extent that
- the property transferred is designated by HMRC as of national interest, and
an appropriate person, usually the new owner, gives undertakings to
- preserve the property
- allow reasonable public access, and
- keep any works of art (or other items) in the UK
The exemption is described as conditional because there is normally a tax charge if the undertakings are broken or the property is sold or given away.
Under IHTA84/S30 (1) a transfer of value is an exempt transfer to the extent that the value transferred is attributable to property
- which, on a claim being made, is designated by the Board, and
- in respect of which certain undertakings are given
Conditional exemption is not available to the extent to which a transfer of value is exempt under
- IHTA84/S18 (transfers between spouses or civil partners (IHTM11031) (IHTM11032))
- IHTA84/S23 (gifts to charities (IHTM11101))
Subject to those exclusions conditional exemption is available on the following transfers, including the termination of an interest in possession in settled property
- transfers on death, including Gifts With Reservation (IHTM14025) within FA86/S102 (3).
- certain lifetime transfers (IHTM14000).
Under IHTA84/S31 (1) the categories of property which may be designated are
- Pictures, prints, books, manuscripts, works of art, scientific collections, and other things not yielding income which are of national, scientific, historic or artistic interest
- Land of outstanding scenic, historic or scientific interest
Buildings of outstanding historic or architectural interest
- Their essential amenity land, and
- Objects historically associated with them.
The exemption has to be claimed and the required undertakings given by the appropriate person. The Heritage Team is primarily responsible for administering the exemption.