INHERITANCE TAX-EXEMPT WORKS OF ART: CONSEQUENCES OF DESTRUCTION OR THEFT

HL Deb 30 June 1993 vol 547 c32WA

Lord Palmer

asked Her Majesty's Government:

Whether, when reasonable steps have been taken by the owners, the insurance money received for an exempt item that is stolen or destroyed would give rise to an inheritance tax or capital tax liability.

The Earl of Caithness

The theft or loss of a conditionally exempt item will generally not constitute a chargeable occasion for inheritance tax or capital transfer tax, whether or not insurance moneys are received, provided that the owner has taken reasonable steps to preserve the object. Further details are given in paragraph 7.12 of the Inland Revenue's booklet IR67Capital Taxation and the National Heritage.