Jurisdiction(s):
United Kingdom

Key definition

Inheritance tax definition

What does Inheritance tax mean? Inheritance tax describes the taxation of wealth transfers on death and, in defined cases, on lifetime gifts and trust transfers. In the UK (England & Wales, Scotland and Northern Ireland), Inheritance Tax is a statutory regime under the Inheritance Tax Act 1984, charged at rates up to 40% on transfers of value. It is usually payable from the deceased’s estate by personal representatives. Lifetime charges arise on chargeable lifetime transfers (typically gifts into most trusts) and where a donor dies within seven years of a potentially exempt transfer. Key features include the nil-rate band and, where conditions are met,...

Conditional exemption from UK inheritance tax for heritage assets: eligibility, undertakings, application process, time limits, charges on breach, CGT deferral, alternative reliefs and maintenance funds

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Practice notes

Conditional relief from Inheritance tax (IHT) on a Transfer of value of a qualifying asset is granted at the Treasury’s discretion, with applications evaluated by the relevant body, currently Arts Council England. The purpose, mirroring other heritage property reliefs, is to secure the retention of pre-eminent heritage objects within the UK and to safeguard them for the public good, rather than see them disposed of to private traders. For a transfer to secure conditional exemption, specified requirements must be satisfied and the owner (or another relevant person) must undertake to keep the item in good repair and to permit reasonable public access.

Conditions for exemption to apply

In order for conditional exemption to operate, the following must be satisfied:

the property transferred must qualify (and be designated by the appropriate body) as pre-eminent for its national, scientific, historic or artistic interest, or, for land and buildings, for its scenic, architectural, historic or scientific interest (see further below), and
an appropriate person (generally the new owner) must give undertakings to:
- protect the property from damage and otherwise conserve it
- allow reasonable public access

These obligations help to keep heritage assets in the UK for the nation’s benefit as a whole, protected...

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Web page updated on 28/05/2026

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