News

Reynolds portrait donated to the nation in lieu of inheritance tax

  • September 05, 2016
  • By Hunters Law

The Howard family has donated a portrait by Joshua Reynolds to the Tate Britain under the government’s Acceptance in Lieu (‘AIL’) scheme to settle a £4.7m inheritance tax bill.

An important portrait of the 5th Earl of Carlisle by Sir Joshua Reynolds, which has hung at Castle Howard in North Yorkshire for more than 200 years, has been accepted for the nation in lieu of £4.7m inheritance tax under the AIL scheme.

The AIL scheme enables taxpayers to offer culturally or historically important works of art and heritage objects to public institutions in full or part payment of their liability to inheritance tax, thereby allowing such items to be preserved for public benefit and at the same time providing a way of settling an inheritance tax liability.  Offers need to be accepted by H M Revenue & Customs, who then give the taxpayer the full open market value of the item, before allocating the object to a public museum, archive or library.

Whilst legal ownership of the Reynolds portrait has been allocated to the Tate Britain, it will remain, for the time being, on public display at Castle Howard under the terms of a loan agreement.  The painting will however be displayed at Tate Britain and elsewhere across the country in the future.

For more information, please contact the partner having responsibility for your affairs, or any partner in the Private Client Department here.

Related News

Sep 03, 2021
Gregor Kleinknecht discusses NFTs in the London Art Week Summer 2021 catalogue
Jul 26, 2021
Gregor Kleinknecht comments on the national crackdown on money laundering and fraud, and how the new regulations could cripple the small art market in The Times
Jul 22, 2021
Hunters’ success in the Chambers HNW 2021 Guide
May 12, 2021
Anastassia Dimmek comments on investing in NFTs and what UHNW clients should consider in Citywealth
Jan 25, 2021
Gregor Kleinknecht and Petra Warrington contribute to the first edition of The Art Law Review
Dec 10, 2020
Gregor Kleinknecht discusses lessons learned about buying and selling art during a global pandemic for London Art Week
Dec 03, 2020
Petra Warrington contributes to the International Bar Association’s Art law: Restrictions on the export of cultural property and artwork handbook
Jul 07, 2020
Gregor Kleinknecht appointed as Chairman of Professional Advisors to the International Art Market’s Board
Jun 25, 2020
Petra Warrington to participate in a panel discussion hosted by London Art Week
Jun 24, 2020
Gregor Kleinknecht and Petra Warrington highlight top ten tips for buying art, as part of London Art Week’s newsletter

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)