British Art Market Federation (BAMF) chairman Anthony Browne raised questions in Whitehall after the Government announced a review of non-doms’ tax status last month.
He wanted clarification over the status of art holdings in offshore trusts and whether, under certain changes in the rules, they would become liable to Capital Gains Tax, for example, if they were brought onshore for sale and the money realised then went back offshore.
If they had, the risk was that such transactions would be moved from the UK to the United and States and Switzerland, where their tax status would be more favourable.
Following last week’s Budget, Mr Browne learnt that the Treasury had looked sympathetically at the art market’s concerns.
“The issues are complex, but the broad structure of the proposals addresses the issues that concerned the art market,” he told ATG.
By Ivan Macquisten
