Valuations for Offers in Lieu & Tax Exemptions

Lyon & Turnbull provides specialist advice on Acceptance (or Offers) in Lieu (AIL) and Conditional Exemption schemes, helping clients manage important works of art, antiques, and collectables within the UK’s tax framework.

These government-backed initiatives allow owners to transfer or retain significant cultural objects while addressing inheritance tax liabilities. Through the Acceptance in Lieu scheme, items of national importance can be offered to the state in settlement of tax, while Conditional Exemption enables owners to retain objects by agreeing to preserve, care for, and provide public access to them.

Our experienced team offers confidential guidance throughout the process, from initial valuation and eligibility assessment to negotiation and submission. As preeminent specialists in the field, we work closely with HMRC, Arts Council England, and other relevant bodies to ensure each case is handled with expertise and care.

Whether you are considering an Offer in Lieu for inheritance tax, exploring Conditional Exemption for artworks, or seeking advice on the status of an existing exempt object, Lyon & Turnbull provides clear, practical support at every stage.

Talk to our Team

If you require an independent valuation for tamp exemption purposes, our specialists would be pleased to assist. Contact our valuations team to discuss your requirements or arrange a confidential consultation.

What is the process for an Offer in Lieu?

The Offer in Lieu (AIL) process is designed to ensure that objects of national importance are carefully assessed, fairly valued, and, where appropriate, preserved for public benefit. While each case is unique, the process typically follows a structured series of steps.

Initial valuation and advice

The process begins with a confidential discussion and expert valuation. Specialists assess the object’s market value, provenance, condition, and cultural significance, advising on whether it may be suitable for the AIL scheme and outlining the potential tax implications.

Submission to HMRC and Arts Council England

If appropriate, a formal application is prepared and submitted. This includes detailed documentation, images, and supporting research. The case is then reviewed by HMRC alongside the relevant national advisory body, such as Arts Council England or Museums Galleries Scotland, who assess the object’s eligibility.

Review and acceptance decision

The object is evaluated for its national, historical, or artistic importance, alongside its agreed valuation. Independent experts may be consulted during this stage. If accepted, terms are agreed, including how the tax liability will be settled through the transfer of the object.

Allocation to a public institution

Once accepted, the object is allocated to a museum, gallery, library, or other public institution, where it can be preserved and, where possible, made accessible to the public. In some cases, allocation may reflect the object’s history or regional significance.

Our Valuations Specialists

Specialist

Andrew Robb

Head of Valuations | London

andrew.robb@lyonandturnbull.com

0207 930 9115

Specialist

Gavin Strang

Managing Director & Head of Valuations, Specialist in Private Collections, Rugs & Carpets

gavin.strang@lyonandturnbull.com

0131 557 8844

Specialist

Katie Hannah

General Valuer

katie.hannah@lyonandturnbull.com

0141 333 1992

Specialist

Jamie Russell

General Valuer

jamie.russell@lyonandturnbull.com

0131 557 8844

Our Team

Jessie Lloyd

Gallery Manager | Glasgow

glasgow@lyonandturnbull.com

0141 333 1992

Our Team

April McSkimming

Valuations Administrator

april.mcskimming@lyonandturnbull.com

0131 557 8844

“Our role is to guide clients through what can be a complicated process, making sure they understand both the opportunities and the responsibilities involved.”

- Katie Hannah, General Valuer

Offer s in Lieu and Tax Examptions FAQs

An Offer in Lieu allows owners to transfer important works of art, antiques, or heritage objects to the UK nation in place of paying inheritance tax. The item must be of national, historic, or artistic importance.

Conditional Exemption allows owners to retain significant objects without paying inheritance tax, provided certain conditions are met. These typically include preserving and maintaining the object, keeping it in the UK and llowing a degree of public access.

Objects considered for these schemes usually include fine art and paintings, antiques and decorative arts, manuscripts and rare books archives and historically important items. Each object must meet strict criteria for cultural or national significance.

Eligibility depends on the object’s importance, provenance, and condition. A specialist valuation is the first step, helping determine whether it may qualify for an Offer in Lieu or Conditional Exemption.

Valuations are carried out by specialists and reviewed as part of the application process. They consider market value, rarity and significance, provenance and condition.

Yes. Conditional Exemption allows you to retain ownership, but you must agree to care for the object appropriately, keep it accessible (by appointment or open days) and maintain its condition.

These schemes can help manage inheritance tax liabilities, preserve important cultural objects and ensure works remain accessible to the public.

Lyon & Turnbull provides expert valuations for tax and heritage purposes, guidance through the application process, liaison with HMRC and relevant bodies and confidential, tailored advice.

No. Many clients begin with an informal conversation to understand their options before deciding whether to proceed.

Professional Valuations: Sale, Insurance, Tax Planning

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Valuations for Offers in Lieu & Tax Exemptions

Talk to our Team

What is the process for an Offer in Lieu?

Initial valuation and advice

Submission to HMRC and Arts Council England

Review and acceptance decision

Allocation to a public institution

Our Valuations Specialists

Offer s in Lieu and Tax Examptions FAQs

What is an Offer in Lieu (AIL)?

What is Conditional Exemption?

What types of objects qualify?

How do I know if my object is eligible?

How are objects valued for tax purposes?

Can I keep my object under Conditional Exemption?

Why consider these schemes?

How can Lyon & Turnbull help?

Do I need to commit straight away?

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