IHTM11260 - Exemptions: conditional exemption

Sections IHTA84/S30 to IHTA/S35 give effect to the general policy of allowing conservation of items of national heritage by enabling transfers of value (IHTM04024) to be conditionally exempted to the extent that

  • the property transferred is designated by HMRC as of national interest, and
  • an appropriate person, usually the new owner, gives undertakings to preserve the property, allow reasonable public access and keep any works of art (or other items) in the UK.

»Ê¹ÚÌåÓýapp exemption is described as conditional because there is normally a tax charge if the undertakings are broken or the property is sold or given away.

Under IHTA84/S30 (1) a transfer of value is an exempt transfer to the extent that the value transferred is attributable to property

  • which, on a claim being made within 2 years of the date of the charge, is designated by the Board, and
  • in respect of which certain undertakings are given.

Conditional exemption is not available to the extent to which a transfer of value is exempt under

  • IHTA84/S18 (transfers between spouses or civil partners (IHTM11031))
  • IHTA84/S23 (gifts to charities (IHTM11101))

Subject to those exclusions conditional exemption is available on the following transfers, including the termination of an interest in possession in settled property

  • transfers on death, including Gifts With Reservation (IHTM14301) within FA86/S102 (3)
  • certain lifetime transfers (IHTM14000).

Under IHTA84/S31 (1) the categories of property which may be designated are

  • Pictures, prints, books, manuscripts, works of art, scientific collections, and other things not yielding income which are of pre-eminent national, scientific, historic or artistic interest or groups of such objects
  • Land of outstanding scenic, historic or scientific interest
  • Buildings of outstanding historic or architectural interest together with their essential amenity land, and objects historically associated with them. 

»Ê¹ÚÌåÓýapp exemption has to be claimed and the required undertakings given by the appropriate person. »Ê¹ÚÌåÓýapp Heritage Team is primarily responsible for administering the exemption.