236 Loan of certain art objects

Summary

This section exempts, subject to conditions, certain benefits provided to an individual by his/her employer from the benefit-in-kind income tax charge under section 118 and from the charge to tax in respect of distributions to participators under section 436. The benefit must consist of the loan to the individual of a work of art or a scientific collection beneficially owned by the company in which the individual is an employee or director and which is available for viewing by the public. The exemption ceases to have effect for the year of assessment 2010 and subsequent years of assessment.

Details

Definitions

(1) “art object” is an object which satisfies the requirements set out in subsection (2).

“authorised person” is an officer the Revenue Commissioners authorised by them in writing for the purposes of the section or a person authorised by the Minister in writing for those purposes.

“the Minister” is the Minister for Arts, Heritage, Gaeltacht and the Islands (now Arts, Sport and Tourism).

“relevant building” is a building approved of for the purposes of section 482.

“relevant garden” is a garden approved of for the purposes of section 482.

(2)(a) & (b) An “art object” means any work of art (including a picture, sculpture, print, book, manuscript, piece of jewellery, furniture or other similar object) or a scientific collection which on application to them in that behalf by a person who owns or occupies a relevant building or relevant garden is determined —

• by the Minister to be an object which is intrinsically of significant national, scientific, historical or aesthetic interest, and
• by the Revenue Commissioners to be an object to which reasonable access and reasonable facilities for viewing are afforded to the public.

In arriving at the determination the Minister may consult with whoever he/she considers necessary.

The requirements for “reasonable access” and “reasonable facilities for viewing” must be complied with before the exemption will be granted. Broadly, the art object must be on view and accessible in a house or garden approved for the purposes of the reliefs for expenditure on significant buildings or gardens (section 482) for 4 hours a day, 60 days a year (of which 40 days must be between 1 May and 30 September), on the same days and at the same times as access is afforded to the building or garden in which the object is kept, and the admission fee, if any, must be reasonable.

Revocation of determination

(2)(c) The Revenue Commissioners may, where necessary, revoke from such date as they consider appropriate their determination that reasonable access to and reasonable facilities for viewing are afforded to the public. In such cases the exemption ceases to apply for the year of assessment in which the effective date of revocation occurs.

Exemption

(3) The relief takes the form of an exemption from the benefit-in-kind income tax charge under section 118 and the charge to tax in respect of distributions to participators under section 436, where —

• a body corporate incurs expense solely in, or solely in connection with, or is deemed to incur expense in connection with, the provision to an individual (being an employee or director of the company) of a benefit or facility which consists of the loan by the body corporate to the individual of an art object beneficially owned by the body corporate, and
• the art object is kept in a relevant building or relevant garden owned or occupied by the individual.

Authorised person

(4) An authorised person may, at any reasonable time, enter a building or garden in which an art object is kept in order to inspect the art object. An authorised person is obliged on request to produce his/her authorisation. Anyone obstructing or interfering with an authorised person is liable to a fine of up to €630.

Claims

(5) All applications and claims under this section must be made on the prescribed form. In the case of a claim under subsection (3) for relief from the benefit-in-kind charge, the claim must be accompanied by such statements, including statements in relation to the expense incurred by the body corporate, as are required by the prescribed form.

Capital gains tax

(6) The exemption (section 606) for capital gains tax in respect of certain objects loaned for display in museums, etc does not apply to an object which is an art object within the meaning of this section.

Cesser of exemption

(7) The exemption ceases to have effect for the year of assessment 2010 and subsequent years of assessment.

Relevant Date: Finance Act 2021