asked the Chancellor of the Exchequer whether the availability of reasonable public access to a work of art while consideration is being given to its eligibility for acceptance in lieu of tax has been treated by the Inland Revenue as a factor justifying the waiving of interest charges arising during the period of such consideration; and, if so, whether the acceptance of this factor has been brought to the attention of taxpayers in any official publication.
[pursuant to his reply, 29 January 1980, c. 585]: I can confirm that, when remission of interest has been requested in cases where property has been accepted in lieu of capital transfer tax, the Inland Revenue has in the past in a very small number of cases been prepared to regard, as a factor justifying the waiving of interest, the fact that the item finally accepted was on public display throughout the period from the date of the offer to the date of its acceptance.This administrative practice, which has now ceased pending the Government's decision on the related recommendation in the third report (Session 1977–78) of the Environment Sub-Committee of the Expenditure Committee, has not been referred to in any official publication. The recommendation itself is under consideration in the context of the review of capital taxation.
asked the Chancellor of the Exchequer whether he will clarify the statement by the Under-Secretary of State for the Environment in Standing Committee F on 22 January (Official Report, c. 259), that when property is accepted in lieu, there is no tax charged on the value of that property itself.
[pursuant to his reply, 29 January 1980, c. 585]: When property accepted in lieu of capital transfer tax is itself of heritage quality, so that it qualifies for conditional exemption from CTT (and this will almost always be the case) the law provides that its acceptance in lieu does not result in the loss of the exemption. The douceur arrangements apply in the usual way in dividing the benefit of the exemption between the offer or and the acquiring body.