Legal News | 6.08.26
Cultural Gifting: a lasting legacy
The Cultural Gift Scheme was introduced to encourage UK taxpayers to donate pre-eminent works of art and other heritage objects for the public during their lifetime. Taxpayers who donate under the Scheme can receive tax benefits in exchange for their donation, together with the comfort that the object donated will be in the care of an institution which will hold it, maintain it and make it accessible to the public.
The Scheme operates by allowing individuals who donate under it to receive a tax credit equal to 30% of the value of the object that is donated. The donor then agrees with HMRC how they intend to use that tax credit against their income tax/CGT liability over a five-year period.
The Scheme currently does have limitations; first, it prevents donors who jointly own heritage objects from participating in the Scheme and, second, requires the donor to agree with HMRC at the outset how their tax credit is to be applied over the five-tax year period.
This, however, is about to change. Announcements made on ‘Legislation Day’ in July outline how the Scheme will operate from April 2027:
- first, the restriction preventing donors that jointly own objects from participating in the Scheme will be removed; and
- second, donors will be given an opportunity within the five-tax year period to amend how their remaining tax credit will be allocated.
The preservation of and public access to national heritage property has long been central to public policy in the UK. If you are interested in understanding more about the Scheme or your own estate planning more generally, please contact our Private Client Team at wealth@wansbroughs.com
