January 2009

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As I write, a few gleams of light are piercing the financial gloom, with stock markets at last beginning to revive. This is good news, not least for those concerned with
the United Kingdom’s public collections, for whom 31 December looms ominously close. That is the deadline for two ambitious fund-raising campaigns. The National Galleries in Edinburgh and London have until the end of the year to commit themselves to spending £50m to buy Titian’s Diana and Actaeon and the National Trust has set itself the target of raising £6.3m to secure the acquisition of Seaton Delaval in Northumberland.

Despite the impact on possible benefactors of the financial crisis, it is possible to be optimistic about both campaigns. As this issue of apollo goes to press, the Art Fund has committed £1m to Diana and Actaeon, its largest-ever donation for a single work of art. This surely will encourage other donors. Might they include the Scottish parliament? It has shown an impressive willingness to help preserve the country’s cultural riches,
giving £5m for Dumfries House in 2007 and £10m for the D’Offay collection this year. The Titian is surely of even greater importance.

Similarly, local pride in the north-east of England is quickly mobilising support to raise the money for Seaton Delaval, and the National Trust has already pledged £6.9m from its own resources to provide the necessary endowment for the house and estate.

The two campaigns are a happy demonstration of the way that the United Kingdom’s tax regime works to the benefit of such public acquisitions when all parties are prepared to co-operate. Diana and Actaeon is one of the magnificent collection of Old Master paintings owned by the Duke of Sutherland that has been on loan to the National Gallery of Scotland since 1945. In offering the Titian to the galleries, the Duke has proposed generous terms: if they commit to buy the painting by 31 December then they have three years to pay for it in instalments, and can exercise an option to buy its pendant, Diana and Callisto, for the same amount in 2013-15. Underpinning this arrangement is the benefit to both the Duke and the national collections of a private treaty sale, whereby the Duke is relieved of his liability for tax on the sale
in return for a hefty discount on the price.

Similarly, Seaton Delaval is available for acquisition because the executors of the late Lord Hastings have proposed offering it to the nation in lieu of capital taxes (the Trust is raising the £6.3m to cover additional costs associated with the acquisition). ‘Acceptance in lieu’ and private treaty sales have become increasingly precious, as the Heritage Lottery Fund (hlf) seems unwilling to help fund acquisitions, arguing that this is the role of the government’s National Heritage Memorial Fund (which in 2007-08 had a budget of £10m, whereas the hlf distributed £255m).

Unlike the Scottish parliament, the English government no longer gives one-off grants for major acquisitions. However, there are rumours that the Treasury is at last considering a change to the law that will allow donors of works of art to public collections to offset such gifts against income tax. If the Chancellor of the Exchequer does surprise us all with such an announcement in the coming year – or even in this autumn’s pre-Budget statement – the glimmers of sunshine penetrating the financial gloom will turn into a rosy glow.

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