Conditional exemption
Manuscripts and archives may be exempted from Inheritance Tax if certain conditions are fulfilled.
The material must be:
- Judged pre-eminent by expert advisers
In order to be judged pre-eminent, manuscripts and archives must normally pass one of the following tests, demonstrating that they:
- Have an especially close association with our history and national life
- Are of especial artistic or art-historical importance
- Are of especial importance for the study of some particular branch of art, learning or history
- Have an especially close association with a particular historic setting.
The owners must agree to:
- Preserve the manuscripts or archives and keep them in the UK
- Ensure that there is reasonable public access to them, either at home or by depositing them in a suitable record repository
- Publicise the availability of such access.
The tax owed in relation to such material is only deferred and not written off. If an owner sells conditionally exempt manuscripts or archives, or ceases to observe the undertakings given to secure exemption, then they must pay any deferred inheritance tax charge based on the value of the items at the date of sale. More information about conditional exemption, including details of material which is available for the public to see or consult under the scheme, can be found on the HM Revenue and Customs website or on the Museums, Libraries and Archives Council website.
