FA 2012 analysis: Gifts to the nation

The acceptance in lieu scheme has been in operation for many years for IHT and allows pre-eminent objects to be gifted to the nation to settle an IHT liability. No such scheme has previously existed for other taxes. FA 2012 Sch 14 introduces a new scheme whereby a pre-eminent object can be gifted to the nation with a set percentage of the value available to be set against income or capital gains tax for individuals and against corporation tax for companies. The set percentage is 30% for individuals and 20% for companies. Individuals can utilise the relief across a period of five tax years starting in the tax year the gift was offered, while companies will benefit from the relief in the accounting period the gift was offered.