asked the Minister for the Arts whether he has any proposals to change the existing acceptance-in-lieu procedures.
A change to the existing procedures was announced in the "Financial Statement and Budget Report 1987/88" by my right hon. Friend the Financial Secretary to the Treasury on Tuesday 17 March. In future, those offering items for acceptance in lieu of tax will have the option of having interest charges waived on offers which are eventually accepted at the original agreed valuation, or of allowing interest charges to accrue and seeking a revaluation of the item before final acceptance. The choice may be made at any time before the memoranda of acceptance are exchanged.
asked the Minister for the Arts if he will make a statement on the recent operation of the acceptance-in-lieu provisions.
The present provisions are working well, as illustrated by the recent acceptance in principle of Constable's "Stratford Mill" or "The Young Waltonians". This offer is a demonstration that the arrangements for a call on the reserve announced by my predecessor in July 1985 are operating effectively and speedily.I would also refer my hon. Friend to the recent announcement by my right hon. Friend the Financial Secretary to the Treasury that offerers now have the option either of having interest charges waived, with the item being accepted at the valuation originally agreed, or of seeking final acceptance, in which case accrued interest charges will be payable.