Capital Gains & Inheritance Tax for Art Collectors

For art collectors, particularly those looking to pass on their collections to future generations, the impact of IHT may be the biggest consideration. Alice explains,

“Inheritance tax remains one of the UK’s least popular taxes, especially for international families who may be used to much lower or even zero inheritance tax rates.”

From 6 April 2025, any individual who has been a UK resident for 10 out of the last 20 tax years is treated as a “long-term resident”, making their worldwide estate fully subject to UK IHT at 40%. Moreover, an IHT “tail” can apply if such a person leaves the UK, meaning that worldwide IHT can continue to apply for up to a decade after departure. These changes mirror the move from domicile-based to residence-based IHT and have prompted many high-net-worth collectors to rethink their UK base.

“For international families, particularly those unfamiliar with the UK’s inheritance tax landscape, this new policy can be a major shock,” Alice remarks. “Many families are now seeking ways to preserve collections without a heavy tax burden.”