§ Mr. FauldsTo ask the Chancellor of the Exchequer what taxes the vendor of a major work of art is liable to pay on the price obtained; and if he will make a statement.
§ Mr. LilleyAssuming that the work of art is not being sold as part of a trading activity, the vendor may be liable to capital gains tax on any gain realised on disposal. If the work of art has previously been conditionally exempted from capital taxation an inheritance tax charge may also be triggered. Special rules apply if the sale is by private treaty to an approved museum, art gallery or heritage body.