Clause 96 - Gifts of real property to charity

Part of Finance Bill – in a Public Bill Committee at 3:30 pm on 13th June 2002.

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Photo of John Healey John Healey The Economic Secretary to the Treasury 3:30 pm, 13th June 2002

In respect of our previous discussion, qualifying works of art is a category for which there may be other problems, but not specific valuation problems. The hon. Gentleman will appreciate that I

am trying to deal with all the amendments grouped together. I shall return to his points.

The clause will extend the relief for shares under Budget 2000 to real property. The purpose is to incentivise new sources of giving to charity. Amendments Nos. 207 to 210 would extend relief to everything from rare works of art to second-hand clothes and household goods. We are not convinced that a further incentive is needed at either end of that range. There is certainly no evidence that the second-hand clothes and goods markets need stimulation in relation to charities. At the other end of the range, there are sufficient incentives in the inheritance and capital gains tax regimes to encourage gifts of works of art and to protect that heritage. As the hon. Gentleman knows, there are extremely generous reliefs from inheritance tax and capital gains tax for such gifts, including for private treaty sales of pre-eminent works of art and other heritage assets to museums and galleries. There is no capital gains tax or inheritance tax on a gift to a qualifying museum or gallery.