Vanina Wittenburg discusses tax tips when donating culturally significant assets in Accountancy Daily

Vanina’s article was published in Accountancy Daily, 8 January 2024, and can be found here.

Vanina Wittenburg, Senior Associate in our Private Client department, explores the rewarding area of heritage work, particularly the preservation of culturally significant assets. The recent acquisition of Munstead Wood once home to celebrated gardener Gertrude Jekyll by the National Trust, highlights the importance of protecting national heritage.

While this case involved a bespoke agreement, there are formal government schemes available to help taxpayers donate pre-eminent assets for public benefit. These include the Acceptance in Lieu (AIL) and Cultural Gifts schemes, which allow individuals to donate important items either during their lifetime or on death, in exchange for tax relief. Eligible assets must be of national, scientific, historic, or artistic importance, and can range from land and buildings to archives, jewellery, and even Stephen Hawking’s office. These schemes offer generous tax incentives, including a “special price” that can exceed the net value of a private sale.

Vanina also outlines the Conditional Exemption scheme, which allows for the deferral of inheritance tax on heritage assets retained in private ownership, provided conditions around public access and preservation are met. She encourages individuals to explore these options, noting that the definition of “pre-eminent” is broad meaning even unusual or unexpected items may qualify for donation to the nation’s cultural legacy.

Read the full article on the Accountancy Daily website [external link].