UK heritage assets - tax exemption

In order to preserve and protect national heritage for the benefit of the public the Government introduced the Conditional Exemption Tax Incentive Scheme.

On this page:

How the Conditional Exemption Tax Incentive scheme works
Assets that may qualify for tax exemption
Who decides what items qualify?

How the Conditional Exemption Tax Incentive scheme works

Under the scheme no Inheritance Tax or Capital Gains Tax is paid when an asset which qualifies for exemption passes to a new owner on death or is gifted.

In order to get the exemption the new owner must agree to:

look after the item
allow public access to it
keep it in the UK - if it is moveable

If the owner doesn't keep to the agreement the exemption is withdrawn and they will have to pay tax on the asset. They will also have to pay tax if they sell the asset.

You have the right to see privately owned heritage assets that have been given exemption.

HM Revenue & Customs (HMRC) keeps a database, of all exempt assets, that you can use to find information about them, including how you can access them.

Visiting or viewing tax-exempt heritage assets

Tax-exempt heritage assets - database

Detailed guidance on the Conditional Exemption Tax Incentive Scheme (PDF, 811KB)

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Assets that may qualify for tax exemption

Examples of assets that may qualify for exemption include:

outstanding historical buildings, estates and parklands and works of art, furnishings, sculptures etc. linked to these or to other historical buildings
buildings of outstanding architectural interest
land of outstanding historic interest or of outstanding natural beauty and spectacular views including woodlands, heath land etc
land of outstanding scientific interest including special areas for the conservation of wildlife, plants and trees
paintings, portraits, drawings, watercolours, furniture, sculptures, books, manuscripts, ceramics etc of artistic, historic or scientific interest in their own right

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Who decides what items qualify?

HMRC determines which assets qualify for exemption after taking advice from the government's heritage advisory agencies:

English Heritage - for historic land, buildings and their contents in England
Natural England - for land of scenic, historic or special scientific interest in England
Historic Scotland - for historic buildings and land in Scotland
Scottish Natural Heritage - for scenic land and land of special scientific interest in Scotland
Cadw: Welsh Historic Monuments - for buildings in Wales
Countryside Council for Wales - for land in Wales
Environment and Heritage Service - for land and buildings in Northern Ireland
Forestry Commission - for woodland areas
Museums Libraries & Archives - for paintings, portraits, drawings, watercolours, furniture, sculptures, books, manuscripts etc of artistic, historic or scientific interest in their own right

English Heritage (Opens new window)
Natural England (Opens new window)
Historic Scotland (Opens new window)
Scottish Natural Heritage (Opens new window)
Cadw: Welsh Historic Monuments (Opens new window)
Countryside Council for Wales (Opens new window)
Northern Ireland Environment Agency (Opens new window)
Forestry Commission (Opens new window)
Museums Libraries & Archives (Opens new window)

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