Dodging tax by buying a listed building

westernpromise

I understand from the Historic England website that

Inheritance tax is payable on the death of an owner or on a gift made within 7 years of death. This may be exempted if the asset falls into one of the following categories:

• Objects or collections of objects pre-eminent for their national, scientific, historic or artistic interest;
• Land of outstanding scenic, scientific or historic interest;
• Buildings of outstanding historic or architectural interest;
• Land essential for the protection of the character and amenities of an outstanding building;
• Objects historically associated with an outstanding building.

The new owner must undertake that reasonable access will be provided for the public and that reasonable steps will be taken for maintenance, preservation and repair.
https://historicengland.org.uk/advice/hpg/assistanceforowners/taxrelief/

So I've looked into what might qualify as the bit in bold above, and I am getting the impression that if you bought a Grade II* building that has "close historical associations with nationally important people" (https://www.gov.uk/government/publications/principles-of-selection-for-listing-buildings) you might be able to dodge IHT on it. At the very list you could bequeath money into a fund to maintain it. So you buy, I don't know, Lawrence of Arabia's cottage as a second home, get it Grade II* listed if it's not already, and then it's outside the estate for IHT purposes.

This sounds like a grand wheeze. Does anyone know more? Surely if it's that easy, everyone would do it - or maybe not, given what a PITA Grade II* buildings are to own?

Thrugelmir

westernpromise wrote: »

At the very list you could bequeath money into a fund to maintain it. So you buy, I don't know, Lawrence of Arabia's cottage as a second home,

Clouds Hill already belongs to the National Trust.

westernpromise

Right, but there must be others. Who owns Wordsworth's lakeland privy, for example? Judging by my own experience I bet he got his best ideas there.

chucknorris

You can also use charities! Inheritance tax isn't a factor to me, any left over money for us will mostly be going to the Dogs Trust and the Last Chance Rescue Centre (who I have also supported for many years already, and I will continue to do so).

GreatApe

Wouldn't moving to a nil rate IHT country for the final few months/years solve the IHT problem?

stator

GreatApe wrote: »

Wouldn't moving to a nil rate IHT country for the final few months/years solve the IHT problem?

You know when you're going to die?
Mystic meg?

lisyloo

GreatApe wrote: »

Wouldn't moving to a nil rate IHT country for the final few months/years solve the IHT problem?

Away from family, free NHS, doctors you've known for decades, dentist you like, district nurses and careers not to mention friends and family?

Got any other ideas?

GreatApe

lisyloo wrote: »

Away from family, free NHS, doctors you've known for decades, dentist you like, district nurses and careers not to mention friends and family?

Got any other ideas?

good points, it clearly wouldn't be worthwhile if you only had say £1 million but if you had £100m then a saving of £40 million would go some way to offset the 'free' NHS

GreatApe

stator wrote: »

You know when you're going to die?
Mystic meg?

No which would mean if you had vast wealth and did not like the idea of a 40% IHT on all of it then you would need to do something about it sooner rather than later