Museums and Galleries set to benefit from new ‘lifetime giving’ incentive
A new scheme that allows people and companies to donate cultural treasures during their lifetime in return for a reduction in their tax liability came into effect on 12th March.
The Cultural Gifts Scheme (CGS) offers a maximum tax reduction of 30% of the agreed value of pre-eminent objects, in the case of income tax and capital gains tax, and 20% of the agreed value of the object where the donor’s liability is income tax. Applicants for the incentive may express a wish for an object to go to a particular institution.
Culture Minister Ed Vaizey said: “This new scheme is aimed at encouraging gifts and donations of wonderful treasures to the nation, where they can be enjoyed by all. Over the years, the Acceptance in Lieu scheme has resulted in a huge array of stunning objects entering our national collections, and the CGS will surely do the same in the years ahead.”
Each year £30m will be available jointly for CGS and the Acceptance in Lieu (AIL) scheme. The scheme will be administered by the Arts Council and items will be registered on a first come, first served basis. If the Panel considers that an object is pre-eminent and meets the relevant conditions, they will agree a valuation and then make a recommendation to the relevant Minister (either the Secretary of State for Culture, Media and Sport, the Welsh Ministers, the Scottish Ministers or the Northern Ireland Department for Culture, Arts and Leisure).
If the relevant Minister agrees with the recommendation, the object will then be assigned to an appropriate museum or gallery where it can be enjoyed by visitors from the UK and abroad.
Peter Bazalgette, chair of Arts Council England, said: “The Cultural Gifts Scheme is a welcome complement to Acceptance in Lieu – making it possible for people to make philanthropic donations during their lifetime. Now the task is to make sure as many people and organisations as possible understand this opportunity.”
As many Philanthropy Impact readers will know the CGS has had a prolonged gestation and particular tribute should be paid to Sir Nicholas Goodison and the members of the Chief Secretary’s Advisory Panel who, when asked in 2003 what the Government could do to ‘encourage donation, and loans, of works of art and culture by people during their lifetime’ and to ‘encourage philanthropy in this area,’ made several recommendations, some of which are included in the scheme.
We would also like to thank our members who have participated in discussions and responded to consultations on giving works of art and other cultural assets to the nation.
This scheme will ensure public collections, and the nation, reap the benefits of the generosity it is intended to encourage.
More information and guidance is available on the Arts Council website.