Sir Nicholas Goodison has called on the government to introduce tax breaks for private owners who donate works of art to museums and galleries in the UK – similar to those in the US.

In a review of regional and national museums’ and libraries’ ability to compete in the market place for works of art and culture – commissioned by HM Treasury – Goodison said tax reliefs would tempt owners to donate works of art of ‘pre-eminent importance’ to public collections during their lifetimes.

He suggests the introduction of a system whereby the gross value of the object could be set against income before the assessment of income tax, and any capital taxes due on the sale would be eliminated. The donor would also be able to spread the income tax saving over a number of years.

“Museums, galleries and libraries are records of our history,” said Goodison. “All over the country they offer amazing opportunities for learning and enjoyment.

“In recent years it has been harder and harder for them to compete to buy essential works of art and culture. The most expensive objects, some of them likely to be exported, are often out of reach.

“We must find ways of encouraging more gifts from private owners and donors. In the United States private giving to public collections, with some encouragement from tax reliefs, is part of the country’s culture. I want more people in the UK to discover the pleasure of giving in this way.”

Sir Nicholas has also recommended raising the annual grant to the National Heritage Memorial Fund to at least £20m – four times its current value – and the creation of a ‘one-stop shop’ operated by Re:source, (the Council for Museums, Archives and Libraries) for museums and owners to get advice and guidance on buying and selling works of art.

Re:source has welcomed the report, and the one-stop shop proposal in particular. The organisation already administers the Acceptance in Lieu (AIL) scheme which has seen items worth over £100m enter public collections over the past three years.

Re:source chair, Mark Wood, said: “We would be pleased to become a central resource for advice and guidance to buyers and sellers of important cultural objects and await with interest the response of the government to Sir Nicholas’s proposals.”

The full report, Securing the Best for Our Museums: Private Giving and Government Support is available to download from www.hm-treasury.gov.uk