Acceptance in Lieu

This section outlines the purpose and process of the scheme, identifying the benefits to potential offerors and receivers (museums, galleries, libraries and archives). The AIL Scheme applies across the United Kingdom.

What kinds of object are relevant to the scheme?

HM Revenue & Customs Revenue may accept works of art, manuscripts, heritage objects, archives and historic documents in payment of inheritance tax. These items must be 'pre-eminent', in other words, of particular historical, artistic, scientific or local significance, Objects must be in acceptable condition.

How does the scheme work in Wales?

Offers in lieu are made to HM Revenue & Customs. They must be approved by the Minister for Housing, Regeneration and Heritage, who is advised by the Acceptance in Lieu Panel of Arts Council England (ACE). The Panel operates on behalf of the Welsh Government and will co-ordinate with CyMAL: Museums Archives and Libraries Wales, in appropriate cases.

In the light of that advice, the Panel recommends whether or not the object in question is pre-eminent and assesses its open market value. The Panel's recommendations are made to the Minister, who decides whether or not an item should be accepted.

Who can use the scheme?

Anyone who is liable for the payment of an existing inheritance tax bill can offer an object in part or whole payment of the tax. This is known as 'Acceptance in Lieu', hence the title of the scheme. All advice on pre-eminence, valuation, condition and allocation (except for the allocation of manuscripts) is managed by ACE on a UK wide basis.

If you have an object which you would like to put forward, please write to Capital Taxes Heritage Team, HM Revenue & Customs, Ferrers House, PO Box 38, Castle Meadow Road, Nottingham, NG2 1BB. It would be helpful, although not essential, to send a copy to Gerry McQuillan, Arts Council England, 14 Great Peter Street, London, SW1P 3NQ.

For more information, visit the Arts Council England website.