Relief for Heritage Donations

If you donate an important national heritage item to an approved body, you can claim a tax credit equal to 80% of its market value. You can offset this tax credit against Income Tax (IT), Corporation Tax (CT), Capital Gains Tax (CGT) or Capital Acquisitions Tax (CAT).

In this case, a heritage item(s) means any kind of cultural item including:

• An archaeological item, archive, book, estate record, manuscript, painting

• Collection of cultural items

• Collection of same in their setting which are considered appropriate for donation to the national collections

The national collections are described as Approved Bodies under the legislation.

These include:

• National Archives of Ireland

• National Gallery of Ireland 

• National Library of Ireland 

• National Museum of Ireland 

• Irish Museum of Modern Art 

• The Crawford Art Gallery Cork 

The Minister for Arts, Heritage Regional, Rural and Gaeltacht Affairs, with the consent of the Minister for Finance also has the authority to approve further bodies for the purpose of the relief. These additional bodies must be funded wholly or mainly by the state or a public/local authority.

To make a donation, you must complete an application form. On the form, you must include the value of the heritage item or collection of items and the body you want to donate the item to. A selection committee will decide if the heritage item meets the requirements. If they decide the item is suitable for donation, they will ask Revenue to determine its market value.

Revenue may seek expert advice when determining the market value of an item or collection.

The market value of an item is, the lesser of:

• the value placed on the item by the donor

• the value determined by us

In order for a donation to take place, the open market value of the item must be at least €150,000. If the donation is a collection of items, at least one item in the collection must have a minimum value of €50,000.

Claiming the tax credit

When you make a donation to an approved body, you will get a certificate of receipt. This certificate will include the market value of the donation and the tax credit you're due. You should send the original certificate to the Collector-General’s Office and they will process your tax credit. You can't offset this credit against USC and the credit is first offset against any arrears of taxes you may have.

Any balance can then be set against current or future taxes. This tax credit is non-refundable and won't lead to any repayment of tax.

Donation of Heritage Property to the Irish Heritage Trust

You can claim a tax credit equal to 50% of its market value on donations of heritage properties to the Irish Heritage Trust or Commissioners of Public Works. You can offset this tax credit against Income Tax (IT), Corporation Tax (CT), Capital Gains Tax (CGT) or Capital Acquisitions Tax (CAT), which might be Gift Tax or Inheritance Tax. However, no refund of the credit will be made.

A heritage property includes associated outbuildings, yards, gardens or designed landscapes and the contents of a building. You can speak with the Irish Heritage Trust or Commissioners of Public Works to find out what type of properties may qualify.

Donations to Sports Approved Bodies

An approved sports body with an approved project with the Department of Transport, Tourism and Sport (DTTAS) may be able to claim tax relief on donations made to the organisation. The donations must be at least €250 in the year. If you pay tax under the Pay As You Earn (PAYE) system and make a donation to an approved sports body, then the sports body can claim the tax relief.

In cases of donations from individuals, the sports body must:

• Get an appropriate certificate from the person making the donation

• Complete a Form 847A and send it to Revenue's Games and Sports Section

The relief is calculated by grossing up the donation at the rate of tax paid by the individual. A sports body cannot claim relief for donations from a self-assessed individual or company. It is the self-assessed individual or the company who claims the donation as an expense when calculating their total income or profit. In this case, there is no grossing-up arrangement.

A donation will qualify under this tax relief if it is:

• a payment, in the form of money, of at least €250
• for the sole purpose of funding an approved project
• not otherwise deductible by a self-assessed individual in calculating their trade profits
• not otherwise deductible by a company as an expense in calculating their profits
• not a qualifying donation under the Charitable Donation Scheme
• not repayable