Heritage Property – New Guidance


The term ‘heritage property’ normally refers to works of art or important buildings that are of significant cultural importance. There are special rules for dealing with such property when it comes to capital taxes and, in appropriate circumstances, the rules allow it to be accepted in satisfaction of Inheritance Tax (IHT) and Estate Duty and conditionally exempt from other capital taxes.
For example, a painting of Venice by 18th Century Italian master Guardi was recently accepted in lieu of an IHT liability, and because the painting was worth more than the IHT due, a payment was made to the estate.
The relevant guidance on heritage property is contained in , which was last updated in 1986. HM Revenue and Customs have announced that this is to be revised and new guidance will be published soon. It is rumoured that this will restrict the available relief on heritage property, which has been abused in some instances.
For advice or more information on IHT planning, contact  us.

Share this article