Heritage properties forced to close during coronavirus pandemic can continue to claim tax relief, HMRC confirms

Heritage properties forced to close during the coronavirus pandemic can continue to claim tax relief, HM Revenue & Customs (HMRC) has confirmed.

The tax authority published new guidance this week extending measures for closing or delaying the opening of your property until 01 April 2022.

Under the Conditional Exemption Tax Incentive Scheme, heritage and culturally significant buildings, land, works of art, and other qualifying objects are exempt from Inheritance Tax and Capital Gains Tax as long as certain conditions are met.

But one of these conditions includes staying open to the public for viewing access.

HMRC has confirmed, however, that any property forced to close due to social distancing restrictions will not have broken its agreement.

The temporary measures will remain in place until 01 April 2022, giving national heritage businesses more time to react to fast-moving public health guidance.

Commenting on the new guidance, HMRC said: “We understand that it may not be possible for owners of properties or assets in the Conditional Exemption Tax Incentive Scheme to meet all their undertakings due to coronavirus.

“If some or all of the period during which your property is normally open to the public falls before 01 April 2022, we will not consider that you have broken your agreement with us if your property is not open for the full number of days required under your agreement. This will apply even if it means you do not open at all until 01 April 2022.”

Click here to learn more about the Conditional Exemption Tax Incentive Scheme.

For help and advice with related matters, please get in touch with our team today.

Posted in COVID-19 Business Support Hub, Property Tax.