A major full-length portrait by Sir Joshua Reynolds of the 5th Earl of Carlisle has been accepted in lieu of inheritance tax for the nation.
The Acceptance in Lieu (AIL) scheme is administered by Arts Council England, and enables taxpayers to pay inheritance tax by transferring important works of art and other important heritage objects into public ownership. The taxpayer is given the full open market value of the item, which then becomes the property of a public museum, archive or library.
The Acceptance in Lieu Panel advises on whether property accepted in lieu is of suitable importance and offered at a value which is fair to both nation and taxpayer. In the last decade the scheme has apparently bought over £250 million of cultural property into public collections
In this case, the acceptance of the Reynolds painting has settled £4,718,000 of inheritance tax. It has been allocated to Tate and will remain on public display in its original setting at Castle Howard in North Yorkshire, and in the future will be shown elsewhere around the country including Tate Britain.
“The Acceptance in Lieu scheme has been enriching our heritage for over a century; I am delighted that this masterpiece by Reynolds, one of the most important painters of the day, has entered our national collection under the scheme,” commented Edward Harley, Chairman of the AIL Panel.
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