§ Mr. Fauldsasked the Chancellor of the Exchequer whether, pursuant to his written answer to the hon. Member for Warley, East on 13 July, there is any impediment to the status of exemptibility from capital transfer tax of heritage objects being conferred immediately before, or concurrently with, sales by private treaty to a qualified public institution or body, thus resulting in a transaction the proceeds from which are by statute tax-free; and whether there is any statutory provision which precludes the agreed price at which such a private treaty sale takes place from being a matter of free negotiation, without obligatory reference to any particular practice as regards method or rate of computation, between the two parties concerned in the transaction.
§ Mr. Peter Rees[pursuant to his reply, 21 July 1981.]: Normally a claim for exemption from capital transfer tax on the transfer of a heritage object, whether in life or on death, will be made at the time of that transfer or shortly afterwards. But if an estate includes heritage objects in 693W respect of which an exemption claim might be made and the executors or administrators wish to sell the object by private treaty while the estate is still in the course of administration and before they have made such a claim, there is nothing in the relevant legislation which prevents designation of the objects as exempt either immediately before or concurrently with that sale.
No. But there is no statutory exemption from capital gains tax on the sale by private treaty of a heritage object where no undertaking has been given regarding maintenance, preservation and access. On such a sale, capital gains tax exemption may be allowed by concession provided that the "douceur" arrangement applies in calculating the purchase price.