Revenue Note for Guidance

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Revenue Note for Guidance

77 Exemption of heritage property

Summary

This section exempts from capital acquisitions tax houses and gardens and objects of national, scientific, historic or artistic interest subject to certain conditions.

Details

(1) Exemption is granted to pictures, prints, books, manuscripts, works of art, jewellery, scientific collections and other things not held for trading which appear to the Revenue Commissioners to be of national, scientific, historic or artistic interest, which are kept permanently in the State (except for such temporary absences outside the State as are approved by the Revenue Commissioners) and in respect of which reasonable facilities for viewing are available to the public, recognised bodies or associations of persons. In general, the Revenue Commissioners will be guided by the views of experts in deciding whether the relevant items are of national, scientific, historic or artistic interest. Full details of any temporary absences of the objects to which the subsection applies should be furnished to the Revenue Commissioners in order that the matter can be considered by them.

(2) To qualify for the exemption, the objects referred to in subsection (1) must form part of the gift or inheritance both at the date of the gift or inheritance and at the valuation date.

Heritage property appropriated by an executor in or towards satisfaction of a particular bequest qualifies for exemption, notwithstanding that it was not part of the bequest in question.

(3) The exemption will be clawed back if an object is sold within 6 years after the valuation date and before the death of the donee or successor. However, the exemption will continue to apply if the sale of the object is a sale by private treaty to the Chester Beatty Library, the Crawford Art Gallery Cork, the Irish Museum of Modern Art, the National Archives, the National Concert Hall, the National Gallery of Ireland, the National Library of Ireland, the National Museum of Ireland, the Commissioners of Public Works in Ireland, the Irish Heritage Trust, any university in the State or any constituent college of that university, a local authority or the Friends of the National Collections of Ireland.

(4) The exemption will also be clawed back if at any time after the valuation date and—

  • (a) before the sale of the object,
  • (b) before the death of the donee or successor, and
  • (c) before such object again forms part of the property comprised in a gift or inheritance (other than an inheritance to which the 1% charge imposed on certain discretionary trusts by section 20 applies) where the subsequent donee or successor (not being the spouse/civil partner of the first-mentioned donee or successor) takes an absolute interest in the object,

there has been a breach of a condition relating to such object being kept permanently in the State (except for temporary absences outside the State which are approved by the Revenue Commissioners – see note on subsection (1)) or in respect of facilities for viewing such objects.

(5) Any work of art normally kept outside the State, which would not be charged to tax but for the fact that it is situated here on the relevant date, will be exempt from tax if brought into the State solely for public exhibition, cleaning or restoration.

(6) Subsections (2) to (4) will apply, subject to certain modifications, as they apply to the objects specified in subsection (1), to a house or garden that is situated in the State and is not held for the purpose of trading and—

  • (a) which, on a claim being made to the Revenue Commissioners, appears to them to be of national, scientific, historic or artistic interest,
  • (b) in respect of which reasonable facilities for viewing were allowed to members of the public during the 3 years immediately before the date of the gift or inheritance, and
  • (c) in respect of which reasonable facilities for viewing are allowed to members of the public.

A claim for exemption will involve—

  • an application to the Revenue Commissioners,
  • an inventory of items in respect of which exemption is being claimed,
  • a valuation of the items, and
  • the grounds for the exemption, stating where the relevant items can be seen by the public and attaching any other relevant material in support of the claim e.g. advertisements.

(7) The provision of facilities for viewing by members of the public of a house or garden is not regarded as reasonable unless full details of opening hours and admission prices have been notified to the National Tourism Development Authority (trading as Fáilte Ireland) before 1 January each year. The house or garden must be open to the public for at least 60 days (of which 40 days must be in the period from 1 May to 30 September) in order to obtain the exemption. Not less than 10 of the 40 days must fall on a Saturday or a Sunday. Reasonable access must be afforded to the house or garden and the price must be reasonable.

Relevant Date: Finance Act 2015