Inheritance Tax Act 1984 section 26

Gifts for public benefit

Section 26 provides an inheritance tax exemption for lifetime transfers of certain property that is of national, scientific, historic or artistic interest, provided the transfer is made to an appropriate body or individual and conditions regarding public access and preservation are met.

• Transfers of land, buildings, works of art, scientific collections and other objects of national importance may be exempt from inheritance tax if they meet the qualifying conditions.
• The property must be given to a body not established or conducted for profit, or to certain approved bodies such as those listed in Schedule 3 of the Act, and it must be shown that the gift is for the public benefit.
• The Treasury must be satisfied that the property is pre-eminent for its national, scientific, historic or artistic interest, and that appropriate steps will be taken to preserve it and provide reasonable public access.
• This exemption was amended by Finance Act 1998 section 143(1) and applies specifically to lifetime transfers (not transfers on death, which are dealt with separately).

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