There are three schemes geared towards offering tax incentives in connection with cultural property.
The Acceptance in Lieu scheme enables taxpayers to transfer important works of art and other important heritage objects into public ownership while paying Inheritance Tax, or one of its earlier forms. The taxpayer is given the full open market value of the item, which then becomes the property of a public museum, archive or library.
The Cultural Gifts Scheme enables UK taxpayers to donate important works of art and other heritage objects to be held for the benefit of the public or the nation. In return, donors will receive a tax reduction based on a set percentage of the value of the object they are donating.
A Private Treaty Sale is the purchase by a public museum or gallery in the United Kingdom and Northern Ireland of an item that has been granted Conditional Exemption from Inheritance Tax (or one of its pre-decessors), at a price that is beneficial to both public purchaser and private vendor.