Chapter: 2 - Inheritance Tax Mitigation: The Basics

Heritage Property

2.11

Two categories of favoured IHT treatment are given to qualifying heritage property (IHTA 1984 ss30 - 42). First, conditional exemption is accorded to transfers typically on death, though also during lifetime by way of chargeable transfer.  Subject to giving certain undertakings, the contingent IHT liability is deferred until either those undertakings are broken or there is a further chargeable event without a renewal of the undertakings.  Second, under the system of ‘acceptance in lieu’, certain heritage property can be offered to and accepted by the nation for lodging in one of the national (or possibly local) museums in satisfaction of a liability to IHT or CGT.  See Chapter 14 for further details.