Expert Witness Journal Issue 63 October 2025 - Flipbook - Page 82
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A medieval church retaining original features,
re昀氀ecting religious and cultural heritage.
An estate with historically associated objects,
such as antique furniture or archival materials
linked to the property.
4. Administrative burden
HMRC may require a Heritage Management Plan,
detailing how the asset will be preserved and
accessed. This adds complexity and typically requires
professional advice. Ongoing reporting obligations
also apply, with HMRC monitoring compliance over
time.
Why consider conditional exemption?
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Tax deferral: IHT and CGT liabilities are
postponed, often inde昀椀nitely, provided the
undertakings are upheld. Successive owners
may renew the undertakings, preserving the
exemption across generations.
Legacy preservation: Families can retain
culturally signi昀椀cant assets without being
forced to sell them to meet tax obligations.
Public engagement: The scheme promotes
public access, enhancing the asset’s visibility
and societal value.
Estate planning 昀氀exibility: Once exempted,
assets may be used more freely without
triggering IHT anti-avoidance provisions (e.g.
gift with reservation of bene昀椀t). Owners may
also establish a Maintenance Fund, which is
itself IHT-exempt, to support the long-term
preservation of the asset—o昀昀ering further
favourable tax treatment.
Conclusion
Conditional exemption is a powerful tool for those
seeking to align the preservation of culturally
signi昀椀cant assets with prudent tax planning.
However, it is not a passive relief - it demands active
stewardship, careful structuring, and ongoing
compliance.
In a climate of increasing uncertainty around IHT
and broader tax reform, Conditional Exemption may
o昀昀er a valuable bu昀昀er - provided the undertakings
are acceptable and sustainable.
For owners of heritage assets, the message is clear:
preserve it and save. With the right advice and
commitment, conditional exemption can help
safeguard both your legacy and your 昀椀nancial
future.
What to watch out for
1. Compliance is essential
Failure to meet the undertakings—such as
inadequate maintenance or insu昀케cient public
access—can result in:
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Andrew Acquier, FRICS
Immediate liability for deferred IHT/CGT.
Interest and penalties.
Loss of future eligibility.
C H A RT E R E D A RT S S U RV E Y O R
Andrew Acquier FRICS has been working as an independent
valuer since 1982, specialising in fine art and antiques.
HMRC conducts periodic reviews to ensure
compliance.
Instructions for probate, divorce settlement, tax/asset and
insurance valuations as well as expert witness work are
2. Restricted 昀氀exibility
regularly received from solicitors and other professionals.
Once an asset is within the regime, its sale or transfer
(except to an approved body) may trigger the
deferred tax, potentially limiting future planning
options.
Andrew has many years experience of compiling reports
for litigious cases, several of which have necessitated a
subsequent court appearance as an expert witness to argue
quantum. Divorce valuations are a speciality, usually as Single
Joint Expert. He is an Associate Member of Resolution.
3. Public access requirements
Work is carried out throughout the UK and abroad.
Owners must provide public access for at least 28
days per year, with speci昀椀ed hours and days. This
can a昀昀ect privacy and may necessitate investment
in visitor infrastructure, insurance, and health
and safety compliance—particularly where access is
granted to stately homes or extensive grounds.
23 York Street
Broadstairs
Kent
CT10 1PB
Assets held in museums or galleries often meet
access requirements more easily, mitigating some of
the practical challenges for private owners.
Tel: 0207 353 6440
Mobile: 07787 518 861
Email: andrew@andrewacquier.co.uk
Website: www.andrewacquier.co.uk
EXPERT WITNESS JOURNAL
80
OCTOBER/NOVEMBER 2025
