Experts outline tax breaks for art patrons

By Joe Dermody

Art patrons can avail of great tax incentives, say McAvoy & Associates chartered accountants and the Lavit Gallery, neighbours on Wandesford Quay, Cork.

Next Thursday, from 5.30pm to 7pm in Lavit Gallery, Wandesford Quay, Clarkes Bridge, McAvoy’s head of tax, Dara Burke, is the main speaker at an event highlighting the latest tax trends in art. He will suggest ways in which art collectors can use the tax system for their benefit.

The reception and exhibition will feature insights into the newly emerging painters that are catching the attention of Ireland’s art critics.

The Irish tax system allows corporations and self-employed individuals to claim tax relief for providing direct financial assistance of €250 or more to Revenue-approved bodies.

“Those who donate a heritage item to a Revenue-approved body are allowed an 80% deduction on income tax, capital gains tax, gift or inheritance tax, or corporation tax,” said Mr Burke.

“Heritage items include paintings, manuscripts, and books. Several conditions attach to the relief including that the item donated must be valued at not less than €150,000.

“The legislation also provides an exemption from Capital Gains Tax (CGT) on the sale of a work of art by a taxpayer which had previously been loaned to a Revenue-approved gallery or museum for a period of not less than ten years.”

The legislation provides an exemption from capital acquisitions tax for certain heritage property items which are included in a gift or an inheritance. The relief is available if the items are made available for viewing to the public and is not sold for six years after the gift / inheritance is made.

These provisions give taxpayers with an interest in the arts an opportunity to assist directly with the development of the arts in Ireland and the maintenance of Ireland’s cultural heritage.

The Lavit Gallery has only recently relocated to Wandesford Quay. On the night of the reception, the gallery will show some of the work of painter Una Sealy, RHA.