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The interaction of estate duty and IHT on objects granted exemption has been revised
The rules for tax relief on some national heritage assets are changing as a result of the Budget statement.
The new arrangements apply to assets on which individuals have previously claimed the exemption from estate duty.
From 16 March 2016, if an object which was previously granted estate duty exemption on death is sold, HMRC will be able to elect whether to charge estate duty or inheritance tax. This aligns the charge with exemptions granted in lifetime.
Two other changes will have effect from royal assent. First, if an object that has been granted exemption from estate duty is lost, there will be a charge to tax unless the loss was outside the owner’s control.
In addition, the beneficial inheritance tax regime, which was lost to some public museums and galleries after local authorities placed their collection into independent charitable trusts will be restored.
