Department for Culture Media and Sport
acceptance in lieu of tax
The Acceptance in Lieu scheme allows people to offer items of cultural and historical importance to the state in full or part payment of their inheritance tax, capital transfer tax or estate duty.
It is currently the most important means of acquiring important items and great works of art for public ownership. Once accepted, they are distributed to museums, galleries and public archival depositories throughout the UK and Northern Ireland
Benefits to owners
The scheme offers clear tax benefits. Items are generally worth 17 percent more if offered in lieu of tax than if sold on the open market at the same price, because tax would have to paid on the amount sold for.
Among the items acquired for the nation are ten sculptures by Barbara Hepworth and paintings by Turner and Kandinksy.
How are items accepted as suitable?
The Museum, Libraries and Archive’s Acceptance in Lieu Panel advises on which items are acceptable in lieu of tax. To qualify for acceptance in lieu of tax, items must be of national, scientific, historic, artistic, architectural or local significance, often antiques or works of art, and they must be:
- Pre-eminent - most excellent
- Valued at a price which is fair to both owner and the State
- In acceptable condition
The Panel, aided by expert advice, assesses whether these criteria are met, and once they are accepted by DCMS, they advise on where the objects should be allocated.
Find out all the criteria for AIL on the MLA's website.
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