§ Mr. Jack
The estimated overall cost to the Exchequer of granting conditional exemption from inheritance tax/capital transfer tax to works of art and chattels is about £55 million in 1994–95 and around £700 million over the period 1984–85 to 1994–95, at constant 1994–95 prices using the GDP market deflator. Comparable information for earlier years to 1977–78 when the list started is not available. And there are no separate estimates of the cost of exempting items included in the list.
The exemption is conditional, not absolute. Its broad effect is to defer payment of tax on the qualifying items for so long as the conditions of the exemption are met. the figure of £700 million given above does not take into account any deferred tax subsequently paid.