A new scheme that allows people and companies to donate cultural treasures in return for a reduction in their tax liability has come into effect.

The Cultural Gifts Scheme is administrated by the Arts Council on behalf of the secretary of state for culture, Media and Sport.

It allows owners of cultural objects or collections to donate them during their lifetime, rather than after their death, as with the Acceptance in Lieu scheme.

The CGS, together with the Acceptance in Lieu Scheme, will operate within a £30m annual limit for both schemes.

This means that the annual reduction in tax liabilities and amount accepted in lieu of tax under both schemes must not exceed £30m in each financial year.

Culture Minister Ed Vaizey said: "This new scheme is aimed at encouraging gifts and donations of wonderful treasures to the nation, where they can be enjoyed by all.

"Over the years, the Acceptance in Lieu scheme has resulted in a huge array of stunning objects entering our national collections, and the CGS will surely do the same in the years ahead."