HMRC has updated its guidance on the conditional exemption tax incentive scheme to deal with variations to the scheme arising from issues related to the coronavirus pandemic. The scheme provides exemption from IHT and CGT on the transfer of national heritage property provided certain conditions are met.
Since the start of the pandemic, HMRC has temporarily relaxed some of the conditions for the scheme which otherwise would be difficult or impossible to meet – for example, where national heritage properties were required to close to the public during the lockdown periods and therefore were unable to provide public access as required under the scheme.
The amended guidance notes that, in the following circumstances, HMRC will not consider the terms of the scheme to have been broken:
where a national heritage property is closed or delays opening until 1 August 2021;
where reasonable public access to the property cannot be provided when following social distancing guidelines; and
where, due to closures before 1 August, the property is not open for the full number of days required under the scheme agreement.
The changes also apply to a conditionally exempted object that is on loan to a museum, gallery or other venue which closes.
HMRC has updated its guidance on the conditional exemption tax incentive scheme to deal with variations to the scheme arising from issues related to the coronavirus pandemic. The scheme provides exemption from IHT and CGT on the transfer of national heritage property provided certain conditions are met.
Since the start of the pandemic, HMRC has temporarily relaxed some of the conditions for the scheme which otherwise would be difficult or impossible to meet – for example, where national heritage properties were required to close to the public during the lockdown periods and therefore were unable to provide public access as required under the scheme.
The amended guidance notes that, in the following circumstances, HMRC will not consider the terms of the scheme to have been broken:
where a national heritage property is closed or delays opening until 1 August 2021;
where reasonable public access to the property cannot be provided when following social distancing guidelines; and
where, due to closures before 1 August, the property is not open for the full number of days required under the scheme agreement.
The changes also apply to a conditionally exempted object that is on loan to a museum, gallery or other venue which closes.
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