HMRC proposed tax reliefs for giving pre-eminent works of art to the nation, outlined in a consultation paper published on 29 June 2011, widens the choice of tax-efficient options available to philanthropic donors, according to PKF, an accountancy firm.

Under the proposals, philanthropic donors will be eligible for a tax reduction based on a percentage of the value of the asset being given to the nation. The consultation document envisages this being 25 percent of the value of the donation, subject to an annual cap (currently £20 million). Such gifts would also be exempt from capital gains tax and any inheritance tax t...