Soon we will be able to bring you news of an important painting recently received by the Art Gallery (and currently with conservators for examination), as a result of the Payment in Lieu Scheme. The following information is for members who may not be aware of this scheme:
The Acceptance in Lieu (AIL) Scheme is administered by the MLA. It enables taxpayers to transfer important works of art and other heritage objects into public ownership while paying Inheritance Tax, or one of its earlier forms. The taxpayer is given the full open market value of the item, which is then allocated to a public museum, archive or library.
Items accepted in lieu and available for allocation
Once an object has been accepted in lieu, it is allocated by the Minister to a suitable museum or gallery. MLA’s AIL Panel provides the Minister with advice on the allocation of all objects, other than manuscripts, which have been accepted in lieu. (In the case of manuscripts, allocation recommendations are made by the Historical Manuscripts Commissioner at The National Archives.) Where an offer has been made with a condition that it be allocated to a particular institution and the Minister has agreed to the allocation, the object is immediately transferred to that institution as soon as the offer is completed.
Where an offer is made with a wish as to allocation, or with neither a wish nor a condition, the item is advertised on the items for allocation area of the MLA website and applications for allocation are invited.
MLA also advises HM Revenue & Customs on works of art, manuscripts, heritage objects and historical documents, which are preserved and made available to the public in return for conditional exemption from Inheritance Tax or Capital Gains Tax. A list of Conditionally Exempt items can be found at http://www.hmrc.gov.uk/heritage/index.htm.
For further information and guidance, see the MLA website at www.mla.gov.uk/what/culturaltaxacceptance_in_lieu