Acceptance in Lieu

Report 2008/09 Cover: Sir Anthony Van Dyck: Portrait of Princess Mary. Contents

Preface 2

Introduction 3 1 Benefits of the scheme 3 The Contemporary 4 Seaton Delaval 4 Valuations 4 Acknowledgments 4

AIL Cases 2008/09 2 1. : The Triumph of Love 6 2. Thomas Gainsborough: Portrait of the Rev. Isaac Donnithorne 8 3. Trafalgar Sword and Three Groups of Medals 9 4. The Archive of Frank Martin 10 5. The Archive of Henry Addington, Viscount Sidmouth 11 6. David Allan: Lead Mining at Leadhills 12 7. The Bingley Cups 13 8. Works by David Bomberg and Joan Eardley 14 9. The Aberdare Archive 16 10. Frank Auerbach: Portrait of Julia 17 11. Jean-François Millet: The Angelus 18 12. John Runciman: Hagar and the Angel 20 13. Sir Anthony van Dyck: Portrait of Princess Mary 21 14. Sir Joshua Reynolds: Portrait of the Harcourt Family 22 15. Hand Club and Stone Adze Blades 23 16. Punch and Judy Archive 23 17. Thomas Gainsborough: Landscape 24 18. Sir John Lavery: Portrait of Violet Trefusis 25 19. Penrhyn Castle and Penrhyn Quarry Papers 26 20. Francesco Guardi: The Entrance to the Grand Canal 27 21. Ambrosius Bosschaert the Elder: Flower Painting 28 22. Perino del Vaga: Study of Arms 30 23. Jacob Bogdani: Birds in a Landscape 31 24. Bonaventura Peeters: Shipping on the Schelde off Antwerp 32 25. Sir John Everett Millais: The Proscribed Royalist 33 26. Jean Tijou: Architectural Design 34 27. Roman Funerary Altar and Monument 35 28. Sir Howard Hodgkin: Portrait of Peter Cochrane 36 29. Two paintings by David Hockney 37 30. Joseph Highmore: Portrait of the Vigor Family 38 31. 18th century Needlework 39 32. F C B Cadell: Still Life with Green Bottle 40 33. Walter Sickert: The Flower Girl 41 34. Shrubland Park Architectural Archive 42 35. The Archive of Sir Joseph Rotblat 43 36. Paris Bordone: Narcissus 44

Appendices 3 1. Cases completed in 2008/09 46 2. Members of the AIL Panel 47 3. Expert Advisers 2008/09 48 4. Allocation of items reported in 2007/08 49 5. The process of making an offer 50

Acceptance in Lieu Report 2008/09 1 Preface

At a time of unprecedented economic turbulence, it is heartening to read in this report that the Acceptance in Lieu (AIL) Scheme is not only weathering the storm but, with an impressive array of 36 cases completed in the year and an outstanding range of treasures, is actually flourishing. The legislative mechanism of AIL dates back a century to 1910, but it was not put into effective operation until 1946 when this country was in a near bankrupt position. The setting aside of the then vast sum of £50m from the sale of war surplus to allow acceptance in lieu to become a viable means of acquisitions was a far-sighted investment which has continued to yield substantial dividends for over sixty years. In 2008/09 AIL has ensured that a wider range of wonderful paintings and archives has entered the collection of the nation for the enjoyment and pleasure of all. Titian’s beautiful Triumph of Love, temporarily on display at The before it finds a permanent home at the Ashmolean Museum in Oxford, is the most memorable of a number of Old Master paintings. As I write, it is the week of the Chelsea Flower Show, and Ambrosius Bosschaert’s exuberant still life of tulips, carnations and a host of other blooms seems to be the perfect embodiment of this country’s passion for gardening. Works by Van Dyck, Gainsborough, Reynolds and Millais add to the list of paintings of the finest quality that are now part of the country’s heritage thanks to AIL. This year also sees a welcome rise in the number of modern painters whose works are coming through the scheme into public ownership. Three of Britain’s greatest living artists have had their works accepted – Frank Auerbach, David Hockney and Howard Hodgkin – painters of international importance who have made such a significant contribution to the artistic and cultural standing of the UK. In the Introduction to this report, the Chairman of the AIL Panel mentions the work that is on-going to bring to a satisfactory conclusion the offer of Seaton Delaval and much of its historic contents. Such an important potential acquisition of Vanbrugh’s imposing mansion on the Northumberland coast would be a major statement of the continuing importance of the AIL scheme in the 21st century. For the North-East it would open up a major tourist attraction and ensure the long-term future of a building which is an important part of our heritage. None of this would be possible without the commitment, energy and expertise of Jonathan Scott and his Panel and Gerry McQuillan and his team. I offer them all my most grateful thanks on behalf of the MLA Board and Chief Executive Roy Clare. Finally, as many of the readers of this report will already know, the administration of the AIL Scheme is transferring from during 2009/10. The intention is to integrate the posts with other functions that are already located in our new head office in Birmingham. This step is part of the MLA’s ongoing work to streamline its operations; changes in the past year are already leading to savings in running costs of 30 per cent, some £4m per year. We aim to continue to provide a high-quality service through the AIL Scheme, and to maintain continuity during the forthcoming changes. Roy Clare and his staff will keep you informed as we progress.

Sir Andrew Motion Chair, MLA

2 Acceptance in Lieu Report 2008/09 Introduction

At a time of such economic gloom it is most encouraging to celebrate the acquisition by the National Galleries in London and Edinburgh of Titian’s great painting Diana and Actaeon. We are also pleased to announce the acquisition through the AIL scheme of a lesser but extremely interesting work by the same artist, The Triumph of Love. This was one of 36 cases finalised last year, resulting in a tax settlement of £10.8m and the acquisition by the nation of archives and works of art with a total value of £19.8m. The comparative figures for recent years are set out below.

Year to 31 March Number of cases Value of objects accepted Tax settled 2001 23 £24.6m £16.0m 2002 27 £35.1m £26.6m 2003 37 £39.9m £15.8m 2004 23 £21.7m £15.0m 2005 28 £13.0m £8.9m 2006 38 £25.2m £13.2m 2007 32 £25.3m £13.9m 2008 32 £15.2m £10.3m 2009 36 £19.8m £10.8m

The offers comprised works by Titian and Van Dyck, Guardi and Millet, Reynolds and Gainsborough, as well as, for the first time, a number of works by living artists. There were also Roman antiquities, fine silver cups and some remarkable needlework panels, while archives ranged from the correspondence of an early 19th century prime minister (including many letters from Nelson and the younger Pitt) to the papers of a Nobel Prize winner. These acquisitions were allocated to the Victoria and Albert Museum in London, the National Gallery of Scotland in Edinburgh and to museums, galleries and archives in Cambridge, Charleston in Sussex, Cheltenham, Exeter, Ipswich, Northampton, Norwich and Oxford. The majority of the objects has not yet been allocated finally because, now that the cases have been completed, it is necessary to advertise their availability. Following the publication of this report we shall be able to proceed with advertising and allocation and the process will be completed in the near future.

Benefits of the Scheme Last year’s report drew attention to some objects which had been accepted in lieu in previous years and had featured in recent exhibitions. The Bingley Cups, accepted this year, were magnificently displayed among the splendours of state dining in the Baroque exhibition at the Victoria and Albert Museum. The exhibition ‘Van Dyck & England’ at Tate Britain included, among seven other works accepted under the Scheme, the fascinating portraits of Sir Robert Shirley, envoy of Shah Abbas, and his wife by Van Dyck. These paintings were part of the contents of Petworth House accepted in lieu in 1957 at a value of £50,000. The value at which indemnity would normally have been sought for the purpose of the exhibition would have been several tens of millions of pounds. We must stress that the nation was not getting a bargain in 1957 – the values were accepted both by our expert advisers and by the offeror’s agents – but that, through the AIL Scheme, the nation was able to acquire masterpieces that would now be unaffordable.

Acceptance in Lieu Report 2008/09 3 The Contemporary In our last report we urged that the AIL Scheme should be extended to encourage the acquisition of contemporary works of art and archives. Although we accept that the introduction of any such changes to the tax regime may have to wait for better economic times, we are pleased to report that in the current year paintings by Frank Auerbach, David Hockney and Howard Hodgkin were offered in lieu and have been accepted. This is a start and we look forward to receiving similar offers in the future.

Seaton Delaval It has been announced in the press that Seaton Delaval, the great early 18th century house designed by Sir John Vanbrugh for the Delaval family in Northumberland, has been offered in lieu of tax together with a large part of the contents, the garden and some of the surrounding estate. The offer of the contents is conditional upon their being retained in the house. The National Trust, to which it is intended that the house and its contents should be allocated, has launched a major fundraising campaign to provide an endowment for the property, to pay for its restoration and to purchase some further adjacent land. The Panel is currently assessing the contents and expects to receive a report on the house and associated land later this year. We do not normally refer to offers which have not been finalised but, in view of the press coverage, we felt that it was appropriate to state the current position. We very much hope that this great baroque masterpiece, one of the most dramatic houses in England, will in due course be accepted in lieu. It would be the first case of an offer of a house and its contents since 1984.

Valuations Since last autumn the art markets have been affected by the fluctuations and uncertainties that have hit the financial markets. This has made valuations particularly hard to establish. Nevertheless, if an offer is made, we have to establish a fair market price at the time, neither taking values that might have been sustainable at the height of the boom nor being unreasonably pessimistic. We are more than ever reliant upon the advice and experience of our expert advisers and, in most cases, we are consulting more than one adviser from the art trade.

Acknowledgements As always, we record our thanks to our advisers who give of their time with such generosity. We should also like to thank James Methuen Campbell, a member of the Panel who retired at the end of the year under report; we were privileged to benefit from his extensive knowledge of paintings and furniture and his experience as the owner of a great country house was invaluable to our discussions.

Jonathan Scott Chairman of the AIL Panel

4 Acceptance in Lieu Report 2008/09 Cases 2008/09

Acceptance in Lieu 1. Titian: The Triumph of Love The Triumph of Love, oil on canvas, laid down on panel, 88.3 cm diameter, was painted by Titian (c. 1485-1576), one of the greatest artists of the . The Triumph of Love is a most unusual work in the artist’s output. It can be traced back to the collection of Gabriel Vendramin, Titian’s Venetian patron, who is depicted in the National Gallery’s The Vendramin Family, venerating a Relic of the True Cross, painted in the 1540s. The Triumph of Love, which dates to the same period, was painted as a coperto to cover a portrait of a lady in a black dress, recorded in the Venrdamin collection in the 1560s, but now untraced. It was originally rectangular but it was cut down and laid on panel in the 17th century. Painting covers were a common element of collections in the 16th century but few have survived. Private collectors often protected a treasured possession with a painted cover which sometimes made an allegorical allusion to the painting beneath it. They used the cover to create a sense of theatre as they revealed hidden treasures to be shared and enjoyed with like-minded friends. The painting depicts , holding his bow and arrow and riding on a lion. The figures are set in a landscape setting showing a fantasy lagoon. The recent cleaning and restoration by the National Gallery have revealed the oculus, or circular window, on which the front paws of the lion rest. This circle originally surrounded the whole image. As the painting has never been relined elements of it, such as the figure of Love, are in an exceptionally well-preserved state. The Panel considered that the painting met the second and third criteria and that it was acceptably valued. The painting is temporarily on display in the National Gallery but has been permanently allocated Above: Titian: The Triumph of Love. (infrared to the Ashmolean Museum where it will be seen when the refurbished reflectogram, showing Titian’s underdrawing) museum opens in November 2009. As the painting could have settled Photo © The National Gallery. more tax than was actually payable, the Ashmolean met the difference Opposite: Titian: The Triumph of Love. of £430,000, to which £180,000 was contributed by The Art Fund. (after cleaning) Photo © The National Gallery.

6 Acceptance in Lieu Report 2008/09 Acceptance in Lieu Report 2008/09 7 2. Thomas Gainsborough: Portrait of the Rev. Isaac Donnithorne Portrait of the Reverend Isaac Donnithorne (1709-1784) was painted by Thomas Gainsborough (1727-1788), oil on canvas, 206 by 177 cm. It depicts the sitter in an unusual combination of the roles of businessman and clergyman. Another slightly larger variant (233 by 152 cm) is in Hereford Cathedral with which Isaac was connected. He had been ordained as an Anglican priest in 1735, but in 1762 he inherited from his brother Joseph the Donnithorne family interests in Cornwall, which included tin-mining ventures. Surrounded by his business ledgers, two of which are inscribed, ‘Toll Tin Accounts’ and ‘Polberra Accounts’, he wears what in the early 1770s was recognisably a clerical wig. The black stockings are also particular to clergymen, but above this he wears a fashionable coat with cape collar and cutaway fronts, tight sleeves and narrow cuffs. The appearance of James Donnithorne’s name on the letter on the table can be explained by the suggestion that the portrait was commissioned with the purpose of being presented to the sitter’s son James. Gainsborough is known to have included the name of the recipient of the portrait in other paintings. The Panel considered that the portrait met the second criterion and after negotiation that it was valued acceptably. The portrait awaits Below: Thomas Gainsborough: Portrait of the Rev. Isaac permanent allocation. Donnithorne (1709-1784).

8 Acceptance in Lieu Report 2008/09 3. Trafalgar Sword and Three Groups of Medals The offer comprised a £100 Lloyd’s Patriotic Fund sword and scabbard made by the London sword cutler, Richard Teed, and three groups of medals. The Lloyd’s Patriotic Fund issued three levels of swords in the early 19th century to reward those who had performed acts of bravery at sea. They increased in ornament according to their value from £30 to £50 and £100. Recent research indicates that only 39 of the highest value swords were issued; this example was awarded to George Hope, Captain of HMS Defence, as the sword’s inscription records, “for his meritorious services in contributing to the signal victory obtained over the combined fleets of France and Spain off Cape Trafalgar, on 21st October 1805”. In addition Hope was awarded a Trafalgar gold medal. He later became a Lord of the Admiralty and was MP for East Grinstead. He died in 1818 and was buried in Westminster Abbey. His son, Admiral Sir James Hope (1808-1881) also had a distinguished naval career and saw action in China during the Second Opium War. His medals, which are part of the offer, include the Order of the Bath, the China War Medal, the Légion d’Honneur and a Royal Naval College prize medal. Sir James Hope’s sister married Sir Harry Verney of Claydon and the medals of their son, Sir Edmund Hope Verney, Above: Lloyd’s Patriotic Fund ‘Trafalgar’ sword presented who fought in the Crimean War, are also part of the offer, as are those to Captain George Hope. © The NTPL of Sir Edmund’s son-in-law, Lt-Col William Henry Salmon, who served Below: Medals awarded to Admiral Sir James Hope in Egypt, in India and in South Africa during the Boer War. (1808-1881). © The NTPL The Panel considered that the sword and medals variously met the first, third and fourth criteria, and, following negotiation, that they were acceptably valued. The chattels have been allocated to the National Trust for display at Claydon House, Buckinghamshire, the Verney family home which has been in the Trust’s ownership since 1956.

Acceptance in Lieu Report 2008/09 9 4. The Archive of Frank Martin The offer comprised the archive of Frank Martin (1914-2004). He was an inspirational teacher who from 1952, when he was appointed head of sculpture, until his retirement in 1979, made the St Martin’s School of Art in London one of the most important centres for sculpture in the post-war era. After training at the Portsmouth Art School and Royal Academy Schools he became a studio assistant to the sculptor William McMillan and posed for the central figure of Triton in the fountain McMillan created for Trafalgar Square. Following distinguished service in the Royal Marines during World War II, when he was twice mentioned in dispatches for bravery, he returned to sculpture in civilian life. Although not a sculptor of the first rank, in teaching he found his metier and transformed the sculpture department at St Martin’s into a thriving centre for the development of new techniques and the use of new materials. This had a profound effect not only on British sculptors but worldwide, making St Martin’s an international centre for avant-garde sculpture. He invited leading sculptors to teach in his department including Anthony Caro, Elisabeth Frink and Eduardo Paolozzi as well as inviting his own students to return after graduation to pass on their insights to the next generation. The archive provides a comprehensive record of everything that took place or shaped the development of the sculpture department at St Martin’s from 1952 onwards and illuminates a critical period in the careers of many important British artists who passed through the department during the 60s and 70s. The archive contains an extensive photographic record and letters from artists, dealers, administrators and critics including Clement Greenberg who wrote in 1964, “No other art school I know achieves results of such immediate importance either pedagogically or artistically. No other art school manifests a spirit so invigorating and at the same time mature; no other art school demands as much of its students.” The Panel considered that the archive met the third criterion and that Below: Students in Frank Martin’s Advanced Sculpture Class of 1967-68, including Gilbert it was acceptably valued. The archive has been temporarily allocated & George, Richard Long, Hamish Fulton and to Tate pending a decision on permanent allocation. Tom Burrows.

10 Acceptance in Lieu Report 2008/09 5. Archive of Henry Addington, Viscount Sidmouth The offer comprised the archive of Henry Addington, Viscount Sidmouth (1757-1844). Although he was Prime Minister for only three years from 1801 to 1804 both succeeding and being succeeded by William Pitt the Younger, he had served as Speaker from 1789 to 1801 and was to be Home Secretary from 1812 to 1821. He was thus at the centre of British politics for nearly four decades at a time when Europe was being re-shaped by the French Revolution, the rise and fall of Napoleon and the political settlement arising from the Congress of Vienna. His reputation is rather unfairly encapsulated in Canning’s couplet: Pitt is to Addington As London is to Paddington Addington’s archive is remarkably complete and includes correspondence from most of the great figures of the day. The single most important group is a collection of over 50 letters from Horatio Nelson. Although Nelson was a prolific letter writer, most of his correspondence relates solely to naval matters. When writing to Addington, however, he ranged over a wide spectrum of political matters as well as addressing details of naval policy in the crucial early years of the 19th century. Although Above: Letter from Nelson, signed ‘Nelson and Bronte’, it has been stated that Addington in retirement purged his papers to dated 31 May, 1801 to Prime Minister Henry Addington efface those that would reflect badly on Pitt, there is little evidence advising of a recognisance trip to the French coast which that this was carried out with any ruthlessness and over 90 letters was planned for 1 June, 1801. from Pitt remain. Other important elements of the archive include a map from the early history of Australia by George William Evans which records the first expedition of 1813 beyond the Great Dividing Range, together with the original accompanying autograph letter dated March 1814. Also included are the papers of Addington’s nephew, Henry Unwin Addington (1790-1870), who was Minister to Washington in the 1820s. The Panel considered that the archive met the first and third criteria and that it was acceptably valued. As the archive could have settled more tax than was actually payable, the Devon Record Office, to which the archive has been permanently allocated, met the difference. The National Heritage Memorial Fund gave a generous grant of £1.6m which not only covered the additional cost of the archive, but funded an imaginative programme to provide access to and interpretation of the contents.

Acceptance in Lieu Report 2008/09 11 6. David Allan: Lead Mining at Leadhills The offer comprised four paintings, oil on canvas, each 38.3 by 58 cm, by David Allan (1744-1796). The artist was born in Clackmannanshire and apprenticed at 11 to a Glasgow printmaker. He studied at the Foulis Drawing Academy attached to Glasgow University and later, with support from Lord and Lady Cathcart, he went to to continue his studies and remained in Italy for 10 years. In Rome he was part of the circle of Gavin Hamilton but also worked in Naples for Sir William Hamilton, Lady Cathcart’s brother. On returning to Britain in 1777 he tried to establish himself in London, but without success, and returned to Scotland in 1779. On the introduction of Lady Erskine he was invited to stay at Hopetoun House during the winter of 1780, where the 3rd Earl of Hopetoun commissioned him to depict the mining on his estate at Leadhills in south-west Scotland. Lead had first been mined in the area in Roman times and in the 18th century it was a thriving business which continued well into the 20th century. The four paintings are a rare example of the depiction of an industrial process in the early years of the Industrial Revolution. In contrast to other paintings of men at work, Allan shows a modern industrial process and not a nostalgic vision of rural life. The four paintings follow the process of lead production from the breaking by children of the lead ore (galena), to the washing of the ore, the pouring of the molten lead into moulds and finally, to the lead ingots being weighed and the clerks completing the appropriate ledgers. The Panel considered that the paintings met the third criterion and, following negotiation, that they were acceptably valued. The paintings have been allocated to the National Galleries of Scotland in Below: David Allan: One of the four scenes accordance with the condition attached to the offer. of Lead Mining at Leadhills, Breaking the ore.

12 Acceptance in Lieu Report 2008/09 7. The Bingley Cups The offer comprised a pair of large Queen Anne silver-gilt cups, covers and matching salvers (cups and covers: 35 cm wide, 38 cm high, 20 cm deep; salvers: 40 cm diameter and 13 cm deep) carrying the maker’s mark of Phillip Rollos. They are listed in the Jewel House records as having been delivered in December 1713 and March 1714 for use by Robert Benson, 1st Baron Bingley who, having completed a period as Chancellor of the Exchequer, was appointed Ambassador Extraordinary to the Court of Spain in late 1713. The silver cost £308, 5sh, 10d. They were designed as ambassadorial silver to impress those who would have seen them set out as part of the buffet at official functions thereby reflecting the importance of the ambassador and the country that he represented. Although little is known about the silversmith Philip Rollos, he must have been part of the influx of Huguenot craftsmen who came to England in the late 17th century. He rose to be Subordinate Goldsmith to William III and to Queen Anne. After the cups had been returned to the Jewel House in 1725, they became part of the royal collection and were taken by George II to Herrenhausen, the royal palace in Hanover, some time after his succession in 1727. When Victoria became Queen of Great Britain in 1837, she was unable under Salic law to inherit the throne of Hanover. This passed instead to the eldest surviving son of George III, Ernest Augustus, Duke of Cumberland, and on his death in 1851 to his son, George Frederick. After Hanover was annexed by Prussia in 1866, the family lived in exile in Austria. In 1924 much of the Hanoverian plate Below: One of the pair of Bingley Cups by Philip Rollos. was sold privately in Vienna. The Panel considered that the cups met the second and third criteria and, following negotiation, that they were acceptably valued. They have been allocated to the Victoria and Albert Museum where they had previously been on loan. 8. Works by David Bomberg and Joan Eardley David Bomberg was born in Birmingham to Polish immigrant parents The offer comprised four items; who soon moved to London. Bomberg attended evening classes given three works by David Bomberg (1890-1957) by Walter Sickert at the Westminster Technical Institute. He studied and a double-sided painting by Joan Eardley at the Slade from 1911 to 1913 where his fellow students included (1921-1963): Mark Gertler, Paul Nash, William Roberts and Edward Wadsworth David Bomberg and he soon became a leading member of the British avant-garde. Although he was not a formal part of the Vorticist movement, his a) Bideford, Devon, signed lower left, paintings showed his engagement with the dynamism of modern ‘Bomberg, 46’, oil on canvas, urban life. By the 1920s his style turned to a more traditional response 64.8 by 71.1 cm; to landscape and after visiting Palestine, he spent increasing periods b) Rhonda, charcoal, 48.3 by 61.0 cm; of the 1930s in southern Spain. His work was by now out of favour and after 1945 he turned to teaching. His students during this period c) Figure composition, watercolour and pencil, included Frank Auerbach and Leon Kossoff. The painting Bideford, 50.8 by 55.9 cm; Devon is a fine example of his intense semi-abstract response to Joan Eardley landscape. The two works on paper are both good examples of his vigorous draughtsmanship. d) recto: Children Playing; verso: The Fireplace, oil on canvas, 71.1 by 88.9 cm. Joan Eardley was born in Sussex, but her Scottish mother evacuated the family to Glasgow in 1939 and she enrolled at the Glasgow School of Art where she studied until 1945. Children Painting shows her highly individual engagement with the street life of post-war Glasgow; on the verso there is a depiction of the fireplace in her studio. The Panel considered that the four works met the third criterion and were acceptably valued. They await permanent allocation.

Above: Joan Eardley: The Fireplace. Opposite: David Bomberg: Bideford, Devon.

14 Acceptance in Lieu Report 2008/09 Acceptance in Lieu Report 2008/09 15 9. The Aberdare Archive The estate papers contain a set of eleven late 18th century maps The Aberdare archive contains three of the Bruce estates in the parish of Aberdare together with a large principal elements: group of deeds, rental documents, tenancy agreements, accountancy a) Aberdare estate papers comprising records and estate letterbooks. documents of title for estates at Aberdare, John Singleton Copley, Lord Lyndhurst (1772-1863) was born in Llanwonno, Llanblethin and elsewhere Boston, Massachusetts, the elder son of the painter of the same name from 1615 to the 20th century and estate who brought his family to England in 1774. After a distinguished period management and account papers; at Trinity College, Cambridge, he was called to the bar in 1804. For the b) papers of John Singleton Copley, next twenty years he made his mark in the legal profession and drew Baron Lyndhurst (1772-1863); and the attention of the Tory Prime Minister, Lord Liverpool. After entering Parliament in 1818 he advanced rapidly and in 1827 he was appointed c) papers of Henry Austin Bruce, Lord Chancellor, an office which he held in two later administrations. Baron Aberdare (1815-1895). He mixed politics with the enjoyment of society both in London and in Paris and entertained artists, authors and scientists. The archive contains both some of his political papers and his family correspondence. His granddaughter married the 2nd Lord Aberdare. Henry Austin Bruce, 1st Lord Aberdare (1815-1895) trained as a lawyer, but was led into politics through his Welsh business concerns. He became MP for Merthyr Tydfil in 1852 as a Liberal. His particular interests lay in education and the mining industry; he served as Home Secretary from 1868 to 1873, following which he became Lord President of the Council and was created Baron Aberdare. He was subsequently President of both the Royal Historical and Royal Geographical Societies. The archive contains family legal papers and Bruce family estate papers. There are also fine series of letters from Gladstone and the artist Edward Lear. The Panel considered that the archive met the third criterion and that it was acceptably valued. The archive has been temporarily allocated to the Glamorgan Record Office where it had been on deposit, pending a decision on permanent allocation.

16 Acceptance in Lieu Report 2008/09 10. Frank Auerbach: Portrait of Julia Portrait of Julia, acrylic on board, 46 by 51.1 cm. was painted in 1992 by Frank Auerbach (b.1932). Auerbach was born in to Jewish- German parents who sent him to Britain in 1939 to escape Nazism. He never saw them again. The painting on offer was part of the estate of Mrs Gerda Boehm (1907-2006) of Hampstead, who was the artist’s cousin and had looked after him on his arrival in England. Precociously talented, Auerbach studied at St Martin’s School of Art and the Royal College of Art, but it was his time with David Bomberg at Borough Polytechnic that influenced him most. He had his first solo exhibition at London’s Beaux Arts Gallery in 1956 and has, in the last 50 years, become one of the most celebrated of British post-War artists. He lives in north London and has used the same studio for half a century. His portrait work has concentrated on three women: ‘E.O.W.’, Stella Olive West, his close friend whom he met in the late 1940s; ‘J.Y.M.’ Juliet Yardley Mills, a professional model whom he met in 1957 and ‘Julia’, Julia Wolstenholme, a fellow student at the Royal College whom he married in 1958. The portrait offered in lieu, Portrait of Julia, dates from 1992. In returning again and again to paint the same sitter, often over extended periods of time, Auerbach has achieved a high level of freshness and emotional involvement. This belies the many hours of sittings necessary before he is satisfied that he has reached a form of completion. In the major retrospective of Auerbach’s work held at the Royal Academy in 2001 one room was devoted solely to portraits of Julia. The painting offered in lieu was one of fourteen selected for exhibition from the many that exist. The Panel considered that the portrait met the second and third criteria and that it was acceptably valued. The painting has been temporarily allocated to the Scottish National Gallery of Modern Art Below: Frank Auerbach: Portrait of Julia, 1992. pending a decision on permanent allocation. (by kind permission of The Artist).

Acceptance in Lieu Report 2008/09 17 11. Jean-François Millet: The Angelus The Angelus, pastel and crayon noir on paper, 34 by 43 cm, was drawn by Jean-François Millet (1814-1875). It is a reduced replica of the original painting (55 by 66 cm) which Millet produced in 1859. The Angelus is one of the most famous images of mid-19th century French art. When it changed hands in 1889 it was the most expensive modern painting ever sold. It was acquired by the French state in 1910 and hangs today in the Musée d’Orsay. Millet and Gustave Courbet were the principal exponents of the movement in mid-19th century French art which rejected the historical and anecdotal genre paintings of the Salon and sought to depict the life of the French peasant and the often harsh and sad realities of rural life. Millet wrote of the painting in 1865, “The Angelus is a painting that I made remembering how when we used to work in the fields, at the sound of the church bells my grandmother would always stop us in our work to say the Angelus for the poor departed, very piously and with our hats in our hands”. In the 1860s when this image was created, Millet was concentrating on the medium of pastels and producing work of the highest technical ability and originality. This pastel is the only known version of the composition produced by the artist in colour. It passed through various French collections until it was acquired in the 1890s by James Staats-Forbes who assembled an outstanding collection of works by Millet. On his death it was bought by the Glasgow collector, John Reid, and passed by descent. It has not been exhibited since it was sold at the studio sale following the artist’s death. The Panel considered that the pastel met the second and third criteria and that it was in an exceptional state of preservation. Following negotiation, the price was considered to be fair. It has been temporarily allocated to the British Museum pending a decision on permanent allocation. Opposite: Jean-François Millet: The Angelus.

18 Acceptance in Lieu Report 2008/09 Acceptance in Lieu Report 2008/09 19 12. John Runciman: Hagar and the Angel Hagar and the Angel, oil on panel, 17 by 28 cm, was painted by John Runciman (1744-1769). He was the younger brother of the more widely known Scottish painter Alexander Runciman. In 1767 the two brothers received a commission from Sir James Clerk to paint the saloon and staircase of his new house at Penicuik, near Edinburgh. They were given an advance of £150 which was used to help fund a trip to Italy. John travelled to London in October and arrived in Rome by the end of the year, staying in the city for most of 1768. According to his brother, he was forced to leave Rome because of the persecution of another Scottish painter, James Nevay. Before he left, he destroyed much of his artistic output from his Roman period and the only remaining item which can be clearly dated to this time is a self-portrait (Scottish National Portrait Gallery) remarkable for its early Romantic atmosphere. He died in Naples a few weeks after his arrival while his brother, accompanied by James Barry, was travelling south to join him. The painting is one of a very small group of works, all on biblical subjects, painted by the artist while in Edinburgh. It depicts the scene from the Book of Genesis, in which Hagar and her son have been cast out of Abraham’s house at the insistence of Sarah; without water and fearful for her child, Hagar prays to God, who sends an angel to point to a miraculously welling stream. Hagar, which is very well preserved, is painted with considerable freedom. Only nine such works seem to have survived, their originality making his early death all the more regrettable. The Panel considered the painting met the second and third criteria and that it was in excellent condition. The price at which it was offered, however, was considered to be an undervaluation, and the Panel advised that an increased valuation of 25 per cent would Below: John Runciman: be appropriate. The painting awaits permanent allocation. Hagar and the Angel.

20 Acceptance in Lieu Report 2008/09 13. Sir Anthony Van Dyck: Portrait of Princess Mary Portrait of Princess Mary (1631-1660), oil on canvas, 136 by 108.5 cm, was painted by Sir Anthony Van Dyck (1599-1641). The artist, who came to England at the invitation of Charles I, became the foremost painter of the Stuart court. The sitter was the eldest daughter of Charles I. At the age of nine, in May 1641, she married William II, Prince of Orange. William wrote to his parents in the days following the wedding ceremony, “I find her more beautiful than the painting.” Van Dyck’s portrait of the future bride had been sent to Holland as part of the pre-marital negotiations. William returned to Holland at the end of the month and Mary was to follow him within 12 months. The child bride was accompanied by Queen Henrietta Maria who brought with her considerable quantities of jewels and plate in an effort to buy arms to support her husband’s cause in the Civil War. With the death of her father-in-law in March 1647, her husband succeeded and she became Princess of Orange. Her life in Holland, however, was difficult because of the animosity of her mother-in-law and her initial failure to produce an heir. When Above: Sir Anthony Van Dyck: Portrait of Princess Mary. eventually a son, the future William III of Great Britain, was born in late 1650, she was already a widow, her husband having died of smallpox eight days before. She returned to London four months after her brother, Charles II, had been restored to the throne but died of smallpox before the end of the year and was buried in Westminster Abbey. Another version of the portrait was exhibited recently in the exhibition ‘Van Dyck & Britain’ at Tate Britain. The Panel considered that the portrait met the second and third criteria and that the valuation was fair. The painting has been allocated to Historic Royal Palaces for display at Hampton Court Palace where, until 1647, it had originally hung.

Acceptance in Lieu Report 2008/09 21 14. Joshua Reynolds: Portrait of the Harcourt Family The group portrait of George Simon Harcourt, 2nd Earl Harcourt (1736-1809), his wife Elizabeth Vernon (1746 -1826) and William Harcourt (1743-1830), who was to succeed his brother as 3rd Earl on his death in 1809, was painted by Sir Joshua Reynolds (1723-1792), oil on canvas, 148 by 172 cm. He was the first President of the Royal Academy and one of the foremost portrait painters of the 18th century. George Harcourt had married Elizabeth Vernon, his cousin, in 1765. The Earl and Countess are depicted in their peers’ robes while William is in military uniform. George Harcourt’s father, Simon, was created an earl in 1749 and later was appointed Viceroy of Ireland. He had sat to Reynolds in 1754-5 and at about the same time, his elder son, then Lord Nuneham, was also painted by Reynolds. On the 1st Earl’s death in 1777, George Simon inherited the title. In the same year William Harcourt was appointed aide-de-camp to the King and promoted to colonel in recognition of his capture of the American Major-General, Charles Lee, in the early months of the American War of Independence. Reynolds’ pocket books record sittings for Lord Harcourt in late 1777, 1779 and 1780. (The pocket book for 1778 is missing.) Lady Harcourt had sittings in 1780 as did William Harcourt and payments from the sitters are recorded in 1777 and 1781. At the same time Reynolds painted a portrait of Mary Danby, whom William had married in September 1778. The portrait is unusual in Reynolds’ output in being a group portrait of adults who are depicted three-quarter length. He has created a rich, harmonious and colourful composition of the flamboyant display of peers’ robes and military uniform worn by the three sitters. Although the painting has not been exhibited in public since the middle of the 19th century, the composition is known from a mezzotint by Tomkins. The Panel considered that the painting met the third criterion and, following negotiation, that it was acceptably valued. The painting has been allocated to the Ashmolean Museum, Oxford, pending a decision Below: Joshua Reynolds: Portrait of George Simon on permanent allocation. Harcourt, his wife Elizabeth Vernon and William Harcourt.

22 Acceptance in Lieu Report 2008/09 15. Hand Club and Stone Adze Blades

This collection consists of four items: a) a Maori mottled nephrite handclub or patu ponamu, 43 cm long; b) a New Guinea adze blade of dark green hardstone, 17. 5 cm long; c) an adze blade of brown hardstone, 23.5 cm long; and d) an adze blade of brown hardstone, 17.8 cm long. The most important of this group of stone implements is the nephrite hand club. Patu is the name given to short clubs. While they could also be made of wood or bone, the most important and valuable were those made from nephrite or greenstone as it is called in New Zealand or ponamu in the Maori language. One end is sharpened and used for thrusting and jabbing at the opponent, while the other is rounded, for holding in the hand and pierced; originally the hole would have been threaded with a thong to tie around the wrist. The hand club is also a traditional symbol of a chief’s authority in Maori culture; those Above: Hand club and stone adze blades. carved in nephrite required many hours work because the material is extremely hard and were considered heirlooms, to be passed from one generation to the next. The Panel considered that the collection met the third criterion within a regional context and that it was acceptably valued. It has been allocated to the Royal Albert Memorial Museum, Exeter, pending a decision on permanent allocation.

16. Punch and Judy Archive The offer comprised a large collection of material relating to the subject of Punch and Judy. It includes 18th century material from as early as 1712, ‘Punch turned Critic in a Teller’; coloured prints from the 1790s, early 19th century material such as Pug’s Visit, or The Disasters of Mr Punch of 1806 and many examples of performances of Punch and Judy from the mid to late 19th century, besides a wealth of 20th century material on the continuing tradition of Punch and Judy performances. There is also material on the Italian puppet theatre in Britain as well as on French puppets. The British tradition of the puppet characters, Punch and Judy, can be dated to 1662 when Samuel Pepys noted the performance of an Italian puppet play that took place within the rails of St Paul’s Church, Covent Garden. The Italian original comes from the commedia dell’arte figure of Pulcinella, anglicised to Punchinello or Punch. The Panel considered that the collection met the third criterion and that it was in acceptable condition. The original offer price was considered to be an undervaluation, and the Panel advised the offeror that it could be increased by over 50 per cent. This was accepted. The collection has been temporarily allocated to the Victoria and Albert Museum pending a decision on permanent allocation.

Above: Punch and Judy moveable book published by Darton, 1840.

Acceptance in Lieu Report 2008/09 23 17. Thomas Gainsborough: Landscape Open Landscape with a Milkmaid and Cows, Donkeys, a Plough Team and a Church, Farmhouse and Barn among Trees, oil on canvas, 92.8 by 123 cm, was painted by Thomas Gainsborough (1727-1788). The artist, who was born in Sudbury in Suffolk, began his artistic training in London first briefly with a silver engraver and then with François Gravelot at the St Martin’s Lane Academy. This may have led to his involvement with Francis Hayman’s commission to decorate the supper boxes at Vauxhall Gardens. More certainly, he participated in the decoration of the Court Room at the Foundling Hospital, which was being supervised by Hogarth. In 1746 Gainsborough married Margaret Burr, the natural daughter of the 3rd Duke of Beaufort, who had a settlement of £200 per annum. Two years later his father died and he and his wife left London to return to Suffolk, settling in Sudbury in 1749 where he was able to win commissions from the local gentry. In 1752 he moved to Ipswich because it offered greater opportunities to pursue his artistic career. Although portraiture was the staple of his artistic business, he produced a steady output of pure landscapes. In later life, when he declared himself sick of portraits, he mused upon the opportunity of securing a life of ease which would allow him to wander the countryside, play music and paint landscapes. The painting dates to the late 1750s, at the end of the artist’s time in Ipswich and immediately before his departure for the fashionable spa town of Bath. It is a fine example of the landscapes of Gainsborough’s early maturity and is in particularly good condition. It is filled with typical elements of the East Anglian landscape in which Gainsborough grew up: the ancient oak, the winding river, the undulating field, the windmill and the medieval church. It was commissioned by an East Anglian patron and has passed down through the family for 250 years. The Panel considered that the painting met the second and third criteria and that it was acceptably valued. The painting has been allocated to the Castle Museum, Norwich, in accordance with the condition attached to the offer. Below: Thomas Gainsborough: Landscape.

24 Acceptance in Lieu Report 2008/09 18. Sir John Lavery: Portrait of Violet Trefusis Portrait of Violet Trefusis, oil on canvas board, 33 by 25 cm, was painted by Sir John Lavery (1856-1941). Lavery was born in Belfast and studied in Glasgow and Paris before settling in London where he achieved a high reputation as a society portrait painter. Violet Trefusis (1894-1972) was brought up in Court circles, her mother, Alice Keppel, being mistress to Edward VII. She met Vita Sackville-West at school and in 1908 they visited Italy together. Vita married Harold Nicolson in 1912 and Violet was briefly engaged to Lord Gerald Wellesley and became attached to other young men of her generation. Violet and Vita renewed their friendship in April 1918 and they soon began what Vita’s son, Nigel Nicolson, described in Portrait of a Marriage as a “mad and irresponsible summer of moonlight nights, and infinite escapades, and passionate letters, and music, and poetry”. Immediately following the end of the war, they travelled to France, but on their return, at the insistence of her mother, Violet married Denys Trefusis in June 1919. This, however, did not end the relationship with Vita. In early 1920 they eloped to France and Denys Trefusis and Harold Nicolson had to follow them to recover their wives. They wrote in 1923 a novel which was published, but only in the USA, and under Vita’s name. Above: Sir John Lavery: Portrait of Violet Trefusis. The portrait was painted in 1919 and is an excellent example of the artist’s bravura technique. It is in exceptional condition. The offer also included a portrait of the teacher and historian Oscar Browning by Emanuel Romano (1897-1984). The Panel considered that the portraits met the second and third criteria and that they were acceptably valued. The paintings have been allocated to the National Portrait Gallery pending a decision on permanent allocation.

Acceptance in Lieu Report 2008/09 25 19. Penrhyn Castle and Penrhyn Quarry Papers The offer comprised the archive from Penrhyn Castle. It is of prime importance for North Wales and ranges from the 13th to the 20th centuries. The earliest document records the sale in 1288 of part of the township of Karnechan. The early part of the archive centres on the Griffiths of Penrhyn, who were leading servants of the princes of Gwynedd and played a key part in the attempt of those princes to create a single Welsh principality. In the 14th century they trod a careful path between recognising the political realities of English dominance and their own Welsh allegiance, but their support for Owain Glyndwˆr weakened their predominance in the region. The archive contains 30 deeds of the 14th century, 90 of the 15th and 120 of the 16th, along with large quantities of later material. The archive includes many documents relating to the Pennant family holdings in Jamaica, dating back to 1666, just a few years after the island’s capture. In addition to an extensive run of deeds, many with detailed slave lists, the archive comprises numerous maps and a particularly important sequence of letters between the Pennants and their estate manager in Jamaica. The wealth accrued from the Jamaican estates allowed the family to develop the slate quarry at Penrhyn, which was to become the largest in the world. The papers relating to this activity cover the period 1834 to 1950 and are particularly rich for the years around the turn of the 19th century. Although the main concentration is on account books, ledgers and production records, there is also considerable correspondence between Lord Penrhyn and the quarry managers. The Panel considered that the papers variously met the first and third criteria and that, following negotiation, they were acceptably valued. The papers have been allocated to the Bangor University Library and to Caernarfon Record Office, where they had previously been on deposit, pending a decision on permanent allocation.

26 Acceptance in Lieu Report 2008/09 20. Francesco Guardi: The Entrance to the Grand Canal The Entrance to the Grand Canal, oil on canvas, 34 by 45 cm, was painted by Francesco Guardi (1712-1793). The artist came from a family of painters but it was not until after the death of his brother Gian Antonio (1699-1760) that he achieved the recognisable style upon which his fame rests as one of the greatest of Venetian veduta painters. The painting depicts one of the most familiar Venetian scenes, the view across the Grand Canal towards the Punta della Dogana, the Customs House of the city. The corner tower is topped by a golden ball itself crowned by the figure of Fortune which acts as a weathervane. In the background, beyond the boats in the distance, are the buildings of the Guidecca. Although the painting gives the impression of being a faithful depiction of a well-known Venetian view, Guardi has typically manipulated the details for artistic effect. The size of the ball and of the figure above has been enlarged, as has the white building on the right. Guardi painted this scene repeatedly and a smaller version is in the National Gallery in London. The version offered was in the collection of the Earls Spencer during the 19th and early 20th centuries. The Panel considered that the painting met the third criterion and that it was acceptably valued. It has been allocated to Northampton Museum in accordance with the condition of the offeror to join an Below: Francesco Guardi: interesting collection of 18th century Italian paintings. The Entrance to the Grand Canal.

Acceptance in Lieu Report 2008/09 27 21. Ambrosius Bosschaert The Elder: Flower Painting A Bouquet of Flowers in a Blue and White Wan-Li Porcelain Vase, on copper, signed with the artist’s monogram in the lower right, 69 by 51 cm, was painted by Ambrosius Bosschaert the Elder (1573-1621). The artist was born in Antwerp but moved to Middelburg where he became a member of the Guild of St Luke, the painters’ guild, in 1593. He married Maria van der Ast in 1604 and his brother-in-law, Balthasar, became his pupil and collaborator. As well as being a painter he also acted as a dealer, buying and selling both Dutch and foreign paintings like several other artists of the period. He is one of the first and finest Dutch flower painters. The painting is unusually large for Bosschaert. It depicts in a broadly symmetrical composition a vase of flowers including, at the top of the composition, a stem of white Madonna lilies along with costly striped tulips, roses, narcissi, columbines, carnations, fritillaries, bluebells, marigolds, lilies-of-the-valley and wallflowers. They are all depicted with near scientific accuracy, as are the insects and the caterpillar that can be found among the blooms. A Red Admiral butterfly is shown on the shelf supporting the vase as well as some rare shells which would have been known in Holland from the examples brought back from the Far East by Dutch seamen. At the time, all these items and flowers would have been recognized for their rarity and exotic nature, as would the Chinese vase in which the flowers sit. It is significant that Middleburg was renowned in the early 17th century for its botanical gardens. On stylistic grounds the painting has been dated c. 1609-10, when the artist was at the height of his powers. The smooth surface of the copper panel enhances the artist’s precise technique and gives a jewel-like brilliance to the brightly coloured flowers. The painting has not previously been exhibited and is in very fine condition. It represents a highly significant addition to Bosschaert’s known output, which consists of about fifty works. The Panel considered that the painting met the second and third criteria and that the valuation was fair. The painting has been temporarily allocated to The National Gallery pending a decision on permanent allocation.

28 Acceptance in Lieu Report 2008/09 Above: Ambrosius Bosschaert: Flower Painting.

Acceptance in Lieu Report 2008/09 29 22. Perino del Vaga: Study of Arms The red chalk drawing on two sheets of paper which have been laid down on the same mount, 26.5 by 16.7 cm, has been attributed to Pietro Buonaccorsi. It consists of several studies of outstretched arms and a study concentrating on the hand. It has a distinguished provenance, bearing the inscription ‘Jerom’ which has been associated with Nicholas Lanier’s uncle, Jerome, an active collector of drawings in the period before his death in 1657. Nicholas Lanier, Master of the King’s Music, who was one of Charles’s I art agents and also a distinguished collector in his own right, owned the drawing in the second half of the 17th century. He inscribed the drawing with the word ‘Perino’. It later passed into the ownership of Sir Joshua Reynolds. An anonymous 19th century collector has inscribed ‘Serrani’ (for the 17th century Bolognese artist, Elisabetta Sirani) by the four upper studies and ‘Annibale’ (for Annibale Carracci) by the lowest study. The attribution to Pietro Buonaccorsi, called Perino del Vaga (1501-1547) is plausible. He was born in Florence, but moved to Rome in 1516 and became a pupil of Raphael. He participated in his master’s work on the frescos in the Loggia of the Vatican and after Raphael’s death in 1520 he established himself as one of Rome’s leading fresco painters. The sack of the city in 1527 led him to move to Genoa for over a decade but he returned in 1538 and established a large and thriving workshop. The drawing offered can be compared with a study in the Albertina, Vienna, for the figure of John the Baptist in Perino’s Above: Perino del Vaga: Study of Arms. Nativity, now in the , Washington but originally painted for a church in Genoa. A study in the of the dead Christ includes two similar studies of outstretched arms. A possible alternative attribution is to another of Raphael’s pupils, Polidoro da Caravaggio. What is certain is that the drawing is both of high quality and by an artist from the circle of Raphael. The Panel considered that the drawing met the second and third criteria and that, following negotiation, the valuation was fair. The drawing has been permanently allocated to the Fitzwilliam Museum, Cambridge, in accordance with the condition attached to the offer.

30 Acceptance in Lieu Report 2008/09 23. Jakob Bogdani: Birds In A Landscape Parrots, a Sulphur Crested Cockatoo, a Magpie, a Jay and other Birds beside a Vase in a Park Setting, oil on canvas, 122 by 136 cm, was painted by Jakob Bogdani (1658-1724). The artist was born in upper Hungary, the son of a painter and probably his pupil. In the mid-1680s he spent two years in Amsterdam in the company of another still-life painter. In 1688 he moved to London and settled in the parish of St Giles-in-the-Fields where he remained for the rest of his life. George Vertue records in his notebooks that this mild, gentle-tempered man, courteous and civil, within a short time, “had gained great applause and was much employed by people of Quality, in whose possession are many of his pieces”. A commission from Queen Mary to provide flower pieces to decorate her Looking Glass Closet in the Thames Gallery at Hampton Court established the artist’s reputation in England. He also received commissions from the Duke of Devonshire, the Earl of Oxford, Sir Robert Walpole and the Earl of Albermarle. His early work primarily consists of flower and fruit still-lifes and it was only later that he produced the bird paintings for which he is best remembered today and in which he was influenced by the Dutch painter Melchior de Hondecoeter. The Panel considered that the painting met the third criterion within a regional context and that the valuation was acceptable. The canvas has been allocated to Cheltenham Art Gallery and Museum in accordance with the condition attached to the offer. Below: Jakob Bogdani: Birds in a Landscape.

Acceptance in Lieu Report 2008/09 31 24. Bonaventura Peeters: Shipping on the Schelde off Antwerp Shipping on the Schelde off Antwerp, oil on panel, 63.5 by 129 cm, signed on a spar in the lower right and dated 1649, was painted by Bonaventura Peeters the Elder (1614-1652). The artist was born in Antwerp and became the leading member of a family of marine and landscape painters. His early training is undocumented although his style suggests he may have studied with Andries van Eertvelt. He shared a studio in Antwerp with his elder brother, Gilis Peeters, and in 1634 became a master in the city’s Guild of St Luke. He later shared a house with his sister and brother, Jan Peeters, to the south of Antwerp at Hoboken. His early naturalistic painting shows affinities with Salomon van Ruysdael, Simon de Vlieger and Hendrick Vroom. He made several sea journeys both to Holland and further north. Paintings from the 1640s suggest that he must have visited Scandinavia and Russia. His sea-going experience accounts for the high degree of accuracy in his paintings of ships and their rigging as well as of atmospheric conditions. The painting is a particularly ambitious example of the artist’s work both in its scale and in the degree of finish, probably because it was the result of a specific and important commission. The largest vessel, depicted centre right, is the State Yacht on which can be identified, dressed in red, Archduke Leopold Wilhelm, Governor of the Spanish Netherlands, and Don Gaspar de Bracamonte y Guzmán, leader of the Spanish delegation at the Treaty of Westphalia. The latter is dressed in black with the red cross of the Order of Santiago de Compostela. Both men are known to have been in Antwerp in July 1648 for the celebrations that followed the signing of the Treaty of Osnabrück which, along with the Treaty of Munster, led to the end of the Thirty Years’ War.

The Panel considered that the painting met the third criterion and that Below: Bonaventura Peeters it was acceptably valued. The painting awaits permanent allocation. Shipping on the Schelde off Antwerp.

32 Acceptance in Lieu Report 2008/09 25. Sir John Everett Millais: The Proscribed Royalist The Proscribed Royalist, oil on panel, signed with monogram, 25.4 cm by 20 cm, was painted as a reduced replica by Sir John Everett Millais (1829-1896). The artist was one of the founding members of the Pre-Raphaelite Brotherhood, in September 1848, along with Rossetti and Holman Hunt. They reacted against the classicism that held sway in British art and especially at the Royal Academy where Reynolds’s aspiration to achieve a beauty never found in nature still set the dominant tone. The Brotherhood, in contrast, aspired to be true to nature and to paint people and objects as they were. This resulted in a detailed and meticulous style of painting which sought to represent accurately the objects depicted. Millais’s first painting in a Pre-Raphaelite manner was exhibited in 1849 and the next few years saw him produce the paintings for which he is most famous; Christ in the House of his Parents and Ferdinand and Ariel, both of 1850, were followed by Mariana and Ophelia in the next two years. In 1853 he exhibited The Proscribed Royalist at the Royal Academy when he was still only 23. That painting is now owned by the Andrew Lloyd Webber Foundation. The version which was offered in lieu is a reduced replica. Although the artist does not mention it in his correspondence, it is believed to have been painted at about the time that the full-size version was exhibited, as a way for the artist to gain financially from the success of the exhibited painting. The painting depicts a Cavalier soldier being hidden in an oak tree by his Puritan lover. The incident recalls the escape of Charles II after the battle of Worcester in 1651 when he hid in the Boscobel Oak before fleeing to France. Millais based the features of the soldier on those of his fellow artist, Arthur Hughes. The Panel considered that the painting met the third criterion and, following negotiation, that it was acceptably valued. The painting awaits permanent allocation. Below: Sir John Everett Millais: The Proscribed Royalist.

Acceptance in Lieu Report 2008/09 33 26. Jean Tijou: Architectural Design This red chalk drawing on fine laid paper, watermarked ‘J.B.’, 25 by 13.5 cm, was the basis of the engraving published as Plate 13 in A New Book of Drawings invented and designed by John Tijou, London, 1693. Little is known about Tijou’s life and it is assumed that he was one of the Huguenot craftsmen who came to England from France and the Low Countries in the later part of the 17th century. He arrived in London in 1689 where for the next decade he worked for William and Mary at Hampton Court. His elaborate designs and the superb quality of the workmanship are evident in the wrought-iron balustrades for the King’s and Queen’s staircases at Hampton Court and in the gates and screens which he designed for the Fountain Garden but which now are at the southern end of the Privy Garden. Further examples of his ironwork can be seen on the staircases at Chatsworth and at St Paul’s Cathedral. A New Book of Drawings invented and designed by John Tijou was the earliest book of ironwork designs in England. The plates were engraved by Blaise Gentot (1658-1700) and a pirated edition was published in the early 18th century in France. Batty Langley, the influential writer on architecture, reproduced several of the plates, without attribution, in his 1740 publication, The City and Country Builder’s and Workman’s Treasury of Designs. This design relates to Christopher Wren’s commission of 1692 to remodel the old House of Commons. Since the galleries that were added at this time could not be supported by stone piers, iron columns were used. This is possibly the first recorded use of cast-iron in an architectural context. This drawing, the only one by Tijou known to exist, shows the design which would have been presented to Wren for approval. Above: Jean Tijou: Architectural design. The Panel considered that the drawing met the third criterion and that it was acceptably valued. The drawing has been temporarily allocated to the RIBA Drawings Collection, Victoria and Albert Museum, pending a decision on permanent allocation.

34 Acceptance in Lieu Report 2008/09 27. A Roman Marble Funerary Altar and Monument The offer consisted of two antiquities: a) A Roman marble altar from Aquileia, inscribed on the front BELENO / AVG SACR / I CORNELIVS / L FIL VELL / SECVNDINVS / AQVIL / EVOC AVG N / QVOD IN VRB / DONVM VOV / AQVIL / PERLATVM / LIBENS POSVIT /L D D D First-second century AD. 100 cm high; 36 cm wide; 26 cm deep b) A Roman marble funerary monument, inscribed on the front: DIIS MANIBVS / ISTIMENNIA PF / PRIMIGENIA / SIBI ET / P MVRRIO PRIMO / CONIVGI SVO ET / LIBERTIS LIBERTABVSQ / POSTERISQUE EORVM First-second century AD with basso-relievo carvings of a cleaver on the left side and a balance in the right. 65 cm high; 45 cm wide; 28 cm deep The altar was found near Belina, Aquileia, in 1548 and was acquired for the Grimani. Members of the Grimani family were bishops of Aquileia for almost all of the 16th century and Giovanni Grimani was bishop when the altar was unearthed. It remained there until the collection was dispersed in the 19th century. It is a fine and well- preserved example of a Roman altar for a private individual. The funerary monument, notable for the carvings which indicate that it was for a butcher, is first recorded in England in the late 18th century. It was placed by Sir William Stanhope in the famous Grotto that the poet Alexander Pope (1688-1744) had created in the grounds of his Thameside house at Twickenham. Following Pope’s death, Stanhope had bought the house and acquired this and another, now lost, funerary monument to provide bases for two classical statues of Roman figures. The Panel considered that the antiquities met the third criterion and that they were acceptably valued. They have been allocated to the Ashmolean Museum, Oxford, pending a decision on permanent allocation.

Above: A Roman Funerary Monument, side and front.

Acceptance in Lieu Report 2008/09 35 28. Sir Howard Hodgkin: Portrait of Peter Cochrane Portrait of Peter Cochrane, oil on canvas, 61 by 45.7 cm, was painted by Sir Howard Hodgkin (b. 1932). After studying at Camberwell School of Art and at Bath Academy, Corsham, the artist first exhibited in London in 1962. The bright, apparently abstract, works that he has painted since the 1970s reflect his response to people and to places. His international stature is indicated by the presence of his paintings in many public and private collections of modern and contemporary art throughout the world. The portrait, which was painted in 1962-3, evokes the influential and respected art dealer Peter Cochrane (1913-2004). Cochrane’s career began with the firm of Arthur Tooth and Sons, where he was instrumental in bringing contemporary American and European art to London. Among the artists he exhibited were Nicolas de Staël, Jean Dubuffet, Jean-Paul Riopelle, Asger Jorn, Sam Francis and Ellsworth Kelly. At the time that this portrait was being painted, Hodgkin was represented by Arthur Tooth. It was selected by the critic Edward Lucie-Smith for a mixed show of British Art in 1963 and was in Hodgkin’s second solo exhibition at Arthur Tooth in 1964. Above: Sir Howard Hodgkin: Portrait of Peter Cochrane. The Panel considered that the portrait met the third criterion and that it was acceptably valued. It has been allocated to the National Portrait Gallery pending a decision on permanent allocation.

36 Acceptance in Lieu Report 2008/09 29. Two Paintings by David Hockney This offer in lieu consisted of two paintings from the early 1960s by David Hockney (b. 1937) 1. Study for Doll Boy, 1960, oil on canvas, 61 by 40 cm; and 2. The Berliner and the Bavarian, 1962, oil on canvas, 90.5 by 122 cm. David Hockney was born in Bradford and attended Bradford Art College before moving in 1959 to study for three years at the Royal College of Art (RCA). His outstanding talent had already been recognised in 1961 when he won the junior prize at the John Moores Liverpool exhibition and he went on to win the RCA’s Gold Medal. The first painting was produced during Hockney’s second year at the RCA at a time when Cliff Richard’s Living Doll was top of the pops. The single figure with head thrown back appears to be about to be crushed by the mass at the top of the painting which at the same time he appears almost to kiss. The words ‘unorthodox lover’, taken from Walt Whitman, decorate the canvas. The painting shows Hockney’s assimilation of elements of the style and technique of Bacon and Dubuffet, both of whom had exhibited recently in London. Having graduated from the Royal College he went to Germany and visited many of the museums in Berlin. In The Berliner and the Bavarian the Bavarian is seen like a museum exhibit on a plinth. The painting marks one of the artist’s first essays in double portrait painting. When it was exhibited at The Whitechapel Gallery in 1970, he wrote, “This painting matches an observation about two distinct types of head and face to a quasi-political comment on the stress of living in Berlin.” Both paintings were acquired by the theatre producer Frith Banbury and his partner Christopher Taylor, who were among the first collectors to support the artist. The Panel considered that the paintings met the second and third criteria and that they were acceptably valued. They have been Above: David Hockney: Study for Doll Boy, 1960. allocated to Tate in accordance with the wish of the offeror. Below: David Hockney: The Berliner and the Bavarian, 1962.

Acceptance in Lieu Report 2008/09 37 30. Joseph Highmore: Portrait of the Vigor Family The Portrait of the Vigor Family, oil on canvas, signed and dated 1744, 76.2 by 99.1 cm, was painted by Joseph Highmore (1692-1780). The artist was born in London and attended Merchant Taylors’ School before training as a lawyer. He was, however, determined to be an artist like his uncle, who enjoyed the lucrative post of serjeant-painter to the King in the early 18th century. He appears not to have been trained either by his uncle or any other master, but this did not inhibit his successful portrait business which allowed him to acquire a residence in Lincoln’s Inn Fields in 1724. He visited Holland and Paris in the 1730s. Among his clientele, who came predominantly from the rising professional middle-classes, he had a high reputation for small-scale group portraits. An inscription on the back of the painting identifies the figure on the left, seated at the table engaged in her needlework, as Mrs Vigor (1699-1783) who was married three times. In 1728, shortly after inheriting a considerable fortune on her father’s death, Jane Goodwin married Thomas Ward. He died within three years and she married her husband’s secretary, Claudius Rondeau. Both her first two husbands were involved in business with the Russia Company in St Petersburg. When Rondeau died in 1739, she returned to England from Russia with a letter of recommendation to George II from the Empress Anna. On her way home she met her third husband, William Vigor, who is probably the seated male figure in the portrait. They settled in Taplow and then in Windsor where William died in 1767. Eight years later she published Letters from a Lady who Resided some Years in Russia, to her Friend in England, which received both popular and critical success and was immediately translated into French, German and Dutch and a second English edition soon followed. Additional letters were published after her death in 1784. The Panel considered that the painting met the third criterion and, following negotiation, that it was acceptably valued. It has been allocated to the Victoria and Albert Museum in accordance with the Below: Joseph Highmore: Portrait of the condition attached to the offer. Vigor Family.

38 Acceptance in Lieu Report 2008/09 31. 18th century Needlework This set of embroidered chair and sofa covers is in the same style The offer consisted of: as the piece of embroidery which Jane Vigor carefully displays in the 1) a set of four chair backs, embroidered Highmore portrait (Case 30, opposite). The embroidery and the painting on eau-de-nil shantung Chinese silk have a direct provenance back to Jane Vigor and, although there is ground, embroidered in crewelwork with no documentary evidence to link the needlework to her, there is no sprays of flowers tied with a blue ribbon, reason to doubt the family tradition. Being depicted in the painting 46 cm square; with her embroidery indicates the importance that the sitter gave to this activity. 2) a sofa seat and back ensuite worked with twin Chinese blue and white spiral The embroideries are in an exceptionally fresh state of preservation cornucopiae, the sofa back worked although it is clear that at some stage the covers have been used for with a central flower spray tied with blue the purpose for which they were intended. Jane Vigor may have made ribbon and two flanking cornucopiae, these embroideries while she was in Russia and brought them back to 59 by 140 cm; England on the death of her second husband. Further research into the materials used may be able to throw more light on this suggestion. 3) three chair backs and seats; seats 42 by 46 cm, backs 42 by 55 cm; and The Panel considered that the embroideries met the third criterion and were in an exceptional state of preservation. They were considered to 4) five chair seats and backs en suite, have been offered at a serious undervaluation and the Panel proposed each 48 by 55 cm. that it should be increased by a factor of six. This was accepted by the offeror. They have been allocated to the Victoria and Albert Museum, along with the Highmore painting, in accordance with the condition Below: A mid-18th century needlework attached to the offer. upholstery panel.

Acceptance in Lieu Report 2008/09 39 32. F C B Cadell: Still Life With Green Bottle Still Life with Green Bottle, oil on canvas, 61 by 46 cm, was painted by Francis Campbell Boileau Cadell (1883-1937). The artist was one of the four artists from Edinburgh and the west coast of Scotland who have become known as the Scottish Colourists. Although they never comprised a formal artistic movement, Cadell, J D Fergusson, Leslie Hunter and S J Peploe shared a common awareness of developments in French painting and their use of brilliant colour and their handling of paint brought a new vitality to Scottish painting in the first four decades of the 20th century. Cadell was born in Edinburgh and studied at the Royal Scottish Academy but found the teaching uninspiring. In 1899 he moved to Paris and attended the Académie Julian for four years before returning home. He later worked in Munich and . By the time he settled permanently in Edinburgh in 1909, his painting had developed its characteristic brightly coloured style with its concentration on light and surface within a carefully controlled structure. Although he had a circle of supporters and patrons, he never enjoyed any financial security and his output declined in his later years when he was also hampered by ill health. Above: Francis Cadell: Still Life with Green Bottle. The painting on offer was produced around 1927 when the artist was at the height of his powers. Its use of blocks of saturated colour to depict the qualities of the materials, the reflective table surface, the clear and green glass and the fruit both on the table and depicted in the background all contribute to the creation of a visually arresting image which shows the artist at his best. The Panel considered that the painting met the second and third criteria and that it was acceptably valued. It has been permanently allocated to the National Galleries of Scotland for display at the Scottish National Gallery of Modern Art, in accordance with the condition attached to the offer.

40 Acceptance in Lieu Report 2008/09 33. Walter Sickert: The Flower Girl The Flower Girl, oil on canvas, 40.5 by 51 cm, was painted by Walter Sickert (1860-1942). The artist is recognised increasingly as a crucial figure as British art moved from Victorian academicism towards an engagement with the new trends in European art at the end of the 19th and the beginning of the 20th centuries. Sickert first visited Paris in 1883 with a letter of introduction from Whistler to both Degas and Manet. There he experienced the latest artistic developments at first hand and in Degas he found particular inspiration which was to develop into close friendship. Degas encouraged him to develop his paintings from sketches prepared on the spot and to choose as subjects, places of popular entertainment and the activities of ordinary people. Sickert was to have a profound effect on artists in Britain Above: Walter Sickert: The Flower Girl. during the early years of the 20th century. This painting dates to the period after Sickert’s return to London from Dieppe where he had lived from 1897 to 1905. During this period he renewed his interest in London’s music halls and developed a circle of younger pupils and colleagues which in 1911 led to the establishment of the Camden Town Group. The painting has an interesting provenance. It was acquired directly from the artist by Clive Bell, the writer and art critic who was a central figure in the Bloomsbury Group and who married Vanessa Stephen, sister of Virginia Woolf. He assisted Roger Fry in the organisation of the Second Post- Impressionist Exhibition in London in 1912. The painting appears in a photograph of about 1927 of Clive Bell’s sitting-room at 50 Gordon Square, London where it hung alongside paintings by Juan Gris and Othon Friesz. With the coming of World War II, Bell, a committed pacifist, moved to Charleston, the Sussex farmhouse, where he set up home with Vanessa and her then partner, Duncan Grant. The painting hung in the spare room, which was used to show important paintings in a Bloomsbury decorative interior, hanging alongside Duncan Grant’s portrait of Lytton Strachey and pictures by Roger Fry, Nina Hamnett, and two prints by Sickert, all of which remain at Charleston. In his 1956 collection of memoirs, Old Friends, Bell describes Sickert as “the greatest British painter since Constable”. The Panel considered that the painting met the third and fourth criteria and that it was acceptably valued. It has been allocated to the Charleston Trust, where it will be hung in the same position it occupied from 1939 until 1969.

Acceptance in Lieu Report 2008/09 41 34. The Shrubland Park Architectural Archive Shrubland Park, near Ipswich in Suffolk, was the seat of the De Saumarez family. At its centre is Shrubland Hall which was first built in the 1770s to a design of James Paine for the wealthy clergyman, the Reverend John Bacon. The estate was acquired by the Middleton family in 1796. This architectural archive relates to the major additions to the 18th century house which were made in the 1830s for Sir William Middleton by John Peter Gandy-Deering (1787-1850) and in the period 1848-54 by Sir Charles Barry (1795-1860) and Alexander Roos (c.1810-1881). The archive consists of approximately 115 original drawings, sketches and office copy drawings. J P Gandy-Deering, the younger brother of the architect, Joseph Michael Gandy, remodelled the west front of Shrubland Hall, moving the entrance from the west to the east side of the house, erecting the lower part of a tower in the south-east corner and building a conservatory on the south side. The changes were in the Greek Revival style. Alexander Roos, who has recently been identified as the architect of the group of Italiante gates and entrance lodges at Shrubland, was born in Italy and studied classical architecture before becoming a pupil of Karl Friedrich Schinkel in Berlin. By 1835 he was in England where his most important commission was the reconstruction of the Deepdene in Surrey for Henry Thomas Hope. The Barry drawings relate to later developments in the period 1848-54 and are in the Italianate Renaissance style. Barry proposed raising the existing tower, adding two others, altering the east and west fronts and making extensive alterations to the gardens and terraces. The Panel considered that the archive met the third and fourth criteria and that it was acceptably valued. It has been allocated to the Suffolk Record Office in accordance with the condition attached to the offer.

42 Acceptance in Lieu Report 2008/09 35. The Archive of Sir Joseph Rotblat The large archive covers the whole of the work of Sir Joseph Rotblat (1908-2005) from the 1930s until his death. Born in , he was apprenticed at the age of 12 to an electrician while studying in the evening. After taking a master’s degree in physics at the Free University of Poland, he undertook research in Warsaw on the bombardment of nuclear particles and gained his PhD in 1938. He had ambitions for the Radiological Laboratory of Warsaw to build a cyclotron and came, at the invitation of James Chadwick, to Liverpool University which was then building its own cyclotron. Chadwick invited him to stay in Liverpool; he returned to Warsaw to bring his wife back with him to England but she fell ill and he had to leave alone, just days before the Nazi invasion. In Liverpool, Rotblat worked on the recently discovered process of fission and fission chain reactions, becoming part of the ‘Tube Alloys’ directorate, the government body responsible for research and development in the field of atomic energy during World War II. From the beginning he had reservations about working on the development of atomic weapons but feared the greater evil of their being developed first by the Nazis. By March 1944 he had joined the Manhattan Project at Los Alamos, New Mexico, but within a few months, as it became apparent that Germany had only rudimentary knowledge of fission, he left the project and returned to Britain. He was the only scientist to leave Los Alamos on grounds of conscience. Following the war he helped form the Atomic Scientists Association, the objectives of which were to educate the public about the dangers as well as the benefits of atomic energy and to influence public policy. As part of this effort he organised the Atomic Train, a travelling exhibition which toured the UK. In 1949 he became professor of medical physics at St Bartholomew’s Hospital, London, where he remained until his retirement in 1976, carrying out important research on radiotherapy and the effect of radiation exposure on human tissue. As the increased dangers of nuclear fallout became recognised following the 1954 explosion of the hydrogen bomb, Rotblat and Bertrand Russell began campaigning for greater awareness of the dangers to mankind. This concern was formalised in the Pugwash conferences which, since 1957, have played an important role in bringing together scientists and politicians from across the world. In 1990 Mikhail Gorbachev acknowledged the importance of Pugwash in ending the Cold War. Much of the organisation’s dynamism was due Top: Sir Joseph Rotblat. to Rotblat’s capabilities and energy, which were recognised when he and Pugwash were jointly awarded the Nobel Peace Prize on the Middle and bottom: Images of the Atomic Train. fiftieth anniversary of the dropping of the atomic bomb on Hiroshima. The Panel considered that the archive met the first and third criteria and that it was acceptably valued. It has been allocated to the Churchill Archive Centre, Cambridge, in accordance with the condition attached to the offer.

Acceptance in Lieu Report 2008/09 43 36. Paris Bordone: Narcissus Narcissus, oil on canvas, 58.4 by 40.7 cm, was painted by Paris Bordone (1500-1571). The artist was born in Treviso but following the death of his father in 1507, he and his mother moved to Venice. He briefly entered Titian’s workshop but was producing his own signed paintings by 1518. His earliest extant works date to the mid-1520s and show that he had studied the works of Lotto, Pordenone, Palma Vecchio and Titian. He told Vasari in later life that he sought to follow the style of Giorgione. His major breakthrough in Venice came with a commission for a large canvas for the Scuola Grande di S. Marco. In 1540 he travelled to work for patrons in Augsburg and then Milan. He returned in 1545 and, except for a brief period in Treviso in 1557, he remained for the rest of his life in Venice. As well as religious works, he produced portraits and fanciful studies of women, usually with erotic overtones. The work on offer evokes a timeless and dreamlike world of sensuous beauty that was the hallmark of a class of painting termed poesie, regarded as the visual equivalent of poetry. A youth, identified as Narcissus, is viewed from behind as he dries himself beside a highly elaborate and sculptural fountain. It can be compared with Bordone’s Bathsheba at the Fountain, in the Kunsthalle, Hamburg, which is dated 1552. The Panel considered that the painting met the third criterion and that it was acceptably valued. It has been temporarily allocated to the Ashmolean Museum, Oxford, pending a decision on permanent allocation. Below: Paris Bordone: Narcissus.

44 Acceptance in Lieu Report 2008/09 Appendices

Acceptance in Lieu Appendix 1

Appendix 1 – Cases completed in 2008/09 Case/Description Date of Date of Date of Tax Permanent Allocation Offer1 Approval2 Completion Settled 1. Titian: The Triumph of Love Mar 2004 Sep 2004 Aug 2008 £619,856 Ashmolean Museum 2. Gainsborough: Oct 2006 Jun 2008 Aug 2008 £484,750 to be confirmed Rev. Isaac Donnithorne 3. Trafalgar Sword and May 2004 Aug 2007 Apr 2008 £117,010 National Trust (Claydon) Three Groups of Medals 4. Archive of Frank Martin Oct 2006 Nov 2007 Jul 2008 £56,000 to be confirmed 5. Archive of Henry Addington Oct 2006 Feb 2008 May 2008 £620,897 Devon Record Office 6. David Allan: Feb 2007 Apr 2008 Aug 2008 £185,281 National Galleries of Scotland Leadmining at Leadhills 7. The Bingley Cups May 2007 Dec 2007 Jul 2008 £847,845 Victoria and Albert Museum 8. Paintings by Bomberg & Eardley Aug 2007 Mar 2008 July 2008 £129,000 to be confirmed 9. The Aberdare Archive Sep 2007 Apr 2008 Aug 2008 £54,600 to be confirmed 10. Auerbach: Portrait of Julia Sep 2007 Nov 2007 May 2008 £175,000 to be confirmed 11. Millet: The Angelus Aug 2008 Dec 2008 Mar 2009 £1,050,000 to be confirmed 12. J Runciman: Oct 2007 Dec 2008 Mar 2009 £87,000 to be confirmed Hagar and the Angel 13. Van Dyck: Princess Mary Apr 2008 Jul 2008 Oct 2008 £1,050,000 to be confirmed 14. Reynolds: Harcourt Family Dec 2007 Sep 2008 Dec 2008 £443,417 to be confirmed 15. Hand Club and Stone Adzes Dec 2007 Mar 2008 Oct 2008 £14,000 to be confirmed 16. Punch and Judy Archive Aug 2006 Jul 2008 March 2009 £9, 450 to be confirmed 17. Gainsborough: Landscape Jan 2008 May 2008 Jan 2009 £700,000 Norwich Castle Museum 18 . L aver y: Violet Trefusis Jan 2008 Apr 2008 Jul 2008 £57,400 to be confirmed 19. Archive of Penrhyn Castle Feb 2008 Oct 2008 Jan 2009 £289,748 to be confirmed (Apr 2008) 20. Guardi: Entrance to the Dec 2007 Mar 2008 Oct 2008 £175,000 Northampton Museum Grand Canal & Art Gallery 21. Bosschaert: Flower painting Apr 2008 July 2008 Mar 2009 £1,675,091 to be confirmed 22. Perino del Vaga: Study of Arms May 2008 Oct 2008 Mar 2009 £59,636 Fitzwilliam Museum 23. Bogdani: Birds May 2008 Sep 2008 Nov 2008 £102,975 Cheltenham Art Gallery & Museum 24. Peeters: May 2008 Sep 2008 Nov 2008 £102,975 to be confirmed Shipping on the Schelde 25. Millais: The Proscribed Royalist Jun 2008 Jan 2009 Mar 2009 £437,500 to be confirmed 26. Tijou: Architectural design Jun 2008 Sep 2008 Oct 2008 £10,500 to be confirmed 27. Roman funerary monument and altar Jun 2008 Sep 2008 Oct 2008 £31,500 to be confirmed 28. Hodgkin: Peter Cochrane Jun 2008 Oct 2008 Feb 2009 £42,000 to be confirmed 29. Hockney: Two paintings Jul 2008 Nov 2008 Dec 2008 £234,500 to be confirmed

46 Acceptance in Lieu Report 2008/09 Case/Description Date of Date of Date of Tax Permanent Allocation Offer1 Approval2 Completion Settled 30. Highmore: The Vigor Family Aug 2008 Dec 2008 Mar 2009 £315,000 to be confirmed 31. 18th century Needlework Aug 2008 Dec 2008 Mar 2009 £70,000 to be confirmed 32. Cadell: Dec 2007 Apr 2008 May 2008 £154,000 Scottish National Gallery Still Life with Green Bottle of Modern Art 33. Sickert: The Flower Girl Oct 2008 Dec 2008 Mar 2009 £56,000 Charleston Trust 34. Shrubland Park Aug 2008 Jan 2009 Mar 2009 £51,608 Suffolk Record Office Architectural Archive 35. Archive of Sir Joseph Rotblat Aug 2008 Dec 2008 Jan 2009 £245,000 Churchill Archive Centre 36. Paris Bordone: Narcissus Nov 2008 Jan 2009 Mar 2009 £84,000 to be confirmed Total Tax Settled £10,838,539 Total Agreed Value £19,798,825

1 The date that the offer was first received by MLA. In some cases full details were not received until a later date and this date is given in brackets. 2 Offers are approved following the recommendation of the AIL Panel. It is then for HMRC and the offering estate to complete the legal transfer of ownership by which the offer is completed. Appendix 2

Members of the AIL Panel Jonathan Scott CBE Chairman of AIL Panel since August 2000. Previously: Chairman of the Reviewing Committee on the Export of Works of Art; Deputy Chairman of the Trustees of the Victoria and Albert Museum; Trustee of the Imperial War Museum. Geoffrey Bond DL OBE Chair MLA London, MLA Board Member. Broadcaster and Lawyer. Patrick Elliott Curator, Scottish National Gallery of Modern Art, Edinburgh. Katharine Eustace Editor, The Sculpture Journal; Trustee Compton Verney Collections Settlement. Mark Fisher MP and former Minister for the Arts; author of Britain’s Best Museums & Galleries, Penguin, 2004. Andrew McIntosh Patrick Dealer and collector; formerly Managing Director of the Fine Art Society, New Bond Street, London. James Methuen-Campbell Of Corsham Court, Corsham, Wiltshire. (until 31 March 2009) David Scrase Assistant Director Collections, Keeper, Paintings, Drawings & Prints, Fitzwilliam Museum, Cambridge. Lindsay Stainton Formerly curator in Department of Prints and Drawings, British Museum; subsequently with London dealers Hazlitt, Gooden & Fox; now with Paul Mellon Centre for Studies in British Art. Christopher Wright OBE Formerly, Keeper of Manuscripts, British Library, member of Reviewing Committee on the Export of Works of Arts. Lucy Wood Senior Curator of Furniture, Textiles and Fashion Dept., Victoria and Albert Museum; former curator at Lady Lever Art Gallery, Wirral.

Acceptance in Lieu Report 2008/09 47 Appendix 3

Expert Advisers 2008/09 Philip Mould Historical Portraits Ltd Brian Allen Paul Mellon Centre Glyn Parry National Library of Wales Wendy Baron Independent Consultant Guy Peploe The Scottish Gallery, Edinburgh Jean-Luc Baroni Jean-Luc Baroni Ltd Carol Plazzotta The National Gallery Hugh Belsey Independent Consultant Hamish Riley-Smith Hamish Riley-Smith Rare Books and Manuscripts Anne-Marie Benson Independent Consultant Julian Rota Bertram Rota Ltd Iona Bonham-Carter Independent Consultant Martin Royalton-Kisch British Museum Patrick Bourne Fine Art Society Michael Simpson Hazlitt, Gooden and Fox Christopher Brown Ashmolean Museum Peyton Skipwith Independent Consultant Lucilla Burn Fitzwilliam Museum Susan Sloman W/S Fine Art Richard Calvocoressi Henry Moore Foundation Alison Smith Tate Hugo Chapman British Museum Georgina Stonor Independent Consultant Mary Clapinson St Hugh’s College, Oxford Paul Taylor Warburg Institute, University Caroline Cuthbert Independent Consultant of London Joshua Darby Browse and Darby Michael Tollemache Tollemache Fine Art Ltd Alastair Dickenson Alastair Dickenson Ltd Barbara Tomlinson National Maritime Museum Nimrod Dix Dix, Noonan Webb Charles Truman Gurr Johns James Ede Charles Ede Ltd Marjorie Trusted Victoria and Albert Museum David Ekserdjian University of Leicester Robert Upstone Tate Peter Finer Peter Finer Ltd Johnny Van Haeften Johnny Van Haeften Gallery Celina Fox Independent Consultant Liz Verity National Maritime Museum Francesca Galloway Francesca Galloway Ltd Offer Waterman Offer Waterman & Co. Michael Graham-Stewart Independent Consultant Aidan Weston-Lewis National Gallery of Scotland Richard Green Richard Green Fine Paintings Catherine Whistler Ashmolean Museum, Oxford John Harris Independent Consultant Colin White Director, Royal Naval Museum, Karen Hearn Tate Portsmouth Charles Hind British Architectural Library Thomas Williams Thomas Williams Fine Art Ltd Robert Holden Robert Holden Ltd Andrew Wilson Tate James Holland-Hibbert Hazlitt Holland-Hibbert John Wilson John Wilson Manuscripts Ltd Paul Joannides University of Cambridge Tom Wilson The Open Eye Gallery, Edinburgh Jonathan King British Museum Christopher Wood Christopher Wood Gallery Tim Knox Sir John Soane Museum Catherine Lampert Independent Consultant Helen Langley Bodleian Library Ed Maggs Maggs Brothers David Mannings University of Aberdeen Gregory Martin Independent Consultant Patrick Matthiesen The Matthiesen Gallery Peter Mitchell John Mitchell Fine Paintings Lucy Morton Independent Consultant Anthony Mould Anthony Mould Ltd

48 Acceptance in Lieu Report 2008/09 Appendix 4

Allocation of items reported in earlier Reports but only decided in 2008/09.

The Gerald Coke Handel Collection, which was Horace Walpole’s Mirror from Strawberry Hill which accepted in 1998, has been permanently allocated was case 21 in the 2007/08 Report has been allocated to The Foundling Museum where it had been on deposit temporarily to Temple Newsam, Leeds. It has been since being accepted. requested for the forthcoming exhibition on Horace Walpole’s Strawberry Hill which is to be held in late 2009 at the Yale Centre for British Art and in Spring 2010 at R P Bonington’s Le Château de la Duchesse de Berry the Victoria and Albert Museum. which was case 37 in the 2002/03 Report has been permanently allocated to the Castle Museum and Art Gallery, Nottingham. Iranian Qajar Enamelled Gold bowl which was case 25 in the 2007/08 Report has been allocated to the Ashmolean Museum, in accordance with the wish of the offeror. The Architectural Archive of William Nicholas Brakspear which was case 10 in the 2007/08 Report has been allocated to the Royal Institute of British Architects, Japanese Edo-Period Helmet which was case 28 in the in accordance with the wish of the offeror. 2007/08 Report has been allocated to the Victoria and Albert Museum, in accordance with the wish of the offeror.

The Archive of the Winn Family of Nostell Priory which was case 16 in the 2007/08 Report has been allocated Paul Henry’s Achill Landscape which was case 32 in the for five years to Wakefield Metropolitan District Council 2007/08 Report has been allocated to Tate in accordance for management by the West Yorkshire Archive Service. with the wish of the offeror.

Acceptance in Lieu Report 2008/09 49 Appendix 5

The process of making an offer After considering the alternative methods of paying the resultant tax, the owner may select one or more heritage Since the report of the Acceptance in Lieu Panel is objects to offer in lieu and then assess their value together generally consulted by those wishing to offer heritage with an appropriate professional adviser. The Acceptance objects in lieu of tax or by their professional advisers, in Lieu Panel is willing to assist offerors in these early we repeat here the section from previous AIL Reports, stages in deciding what might be the most appropriate appropriately updated, which describes in detail the process object or objects to offer. Consultation with the Panel at of making an offer and also the criteria which we use in this point has proved to be useful as it can avoid problems deciding whether an object is appropriate. We apologise caused by the offer of unsuitable objects. for using the inelegant phrase ‘heritage object’ but it is a convenient catch-all to cover the very wide range of Once a decision has been made on what is to be put objects that are offered: paintings, furniture, silver, jewellery, forward for acceptance in lieu, the offeror or an agent archives and innumerable other items. Offers of land contacts the Heritage Team of HMRC with details of the or buildings may be considered separately. proposed offer. The address and telephone number is: The legislation under which heritage objects and land Heritage Team can be accepted in lieu is contained in Sections 230 and HM Revenue & Customs 231 of the Inheritance Tax Act (IHTA) 1984, which was Ferrers House, PO Box 38 originally enacted as the Capital Transfer Tax Act 1984. Castle Meadow Road The Inland Revenue published the official guidance to this Nottingham NG2 1BB legislation, Capital Taxation and the National Heritage Tel: 0845 30 20 900 [IR67] in 1986. The legislation permits the acceptance If HMRC agrees that the offer is competent to proceed, i.e. in lieu of: that the offeror is the person responsible for the payment • land and buildings of the tax and that there is a liability to taxation which could be met by the offer of such a heritage object or • objects which are or have been in certain buildings and objects, the case is referred to the AIL Panel. • objects which are individually pre-eminent or form a The Panel meets once a month, with interim ad hoc pre-eminent group or collection. meetings if required, to decide whether objects offered Offers in lieu of heritage objects are made to HM Revenue appear to be pre-eminent. Wherever possible some or & Customs (HMRC) and the Secretary of State’s approval all of the members of the Panel view the object. is required. Both HMRC and the relevant ministers in England and the devolved administrations seek advice on offers from the Acceptance in Lieu Panel, which is an independent body set up in 1992 by the Museums & Galleries Commission, the predecessor of the Museums, Libraries and Archives Council (MLA). The Panel consists of eleven members who are all experts in some particular field. One of them is selected as a representative of the Historic Houses Association and at least one is chosen for having links with Scotland, Wales or Northern Ireland as a representative for museums and galleries outside England. Offers in lieu can be made whenever a person is liable to pay either Inheritance Tax or Estate Duty. This usually occurs when someone dies, but liability may arise on a transfer of property during someone’s lifetime or out of settled property. It can also arise when someone sells or disposes of objects or other property which immediately beforehand were conditionally exempt from Inheritance Tax or Estate Duty. (The legislation does not authorise acceptance of heritage property or objects in lieu of Income, Capital Gains, Corporation or any other taxes.)

50 Acceptance in Lieu Report 2008/09 Criteria for pre-eminence The second criterion embraces not only the works of great masters, but also painting and sculpture by artists Objects are regarded as pre-eminent if they would who were important in their day and made a significant constitute a ‘pre-eminent’ addition to the collection of a contribution to the artistic life of their times even if national, local authority, university or other independent they were not international figures. We do not limit museum or are ‘pre-eminent’ in association with a our recommendations to the works of such artists as particular building. The criteria for pre-eminence are based Gainsborough, Turner, Bacon and the most notable foreign on the long established ‘Waverley criteria’. These are used painters, but we think that it is right that we should also to assess the importance of objects which have been recommend acceptance of paintings by, for instance, referred to the Reviewing Committee on the Export of artists who are key figures of a local school. This criterion Works of Art. also applies to outstanding examples of decorative or applied art. AIL criteria The third criterion covers archives, good samples of the work of local potteries or furniture manufacture, notable The criteria are: examples of the costume or embroidery of previous • that the object has an especially close association with centuries, objects which, although not important in our history and national life themselves, form part of a collection that is important – the complete library of an 18th century botanist, for instance, • that it is of especial artistic or art-historical interest or a collection of medieval antiquities that includes ‘Gothic’ • that it is of especial importance for the study of some objects deliberately faked to attract enthusiasts for the particular branch of art, learning or history age of Ivanhoe – and non-British works of art which illustrate the history, culture and taste of other countries • that it has an especially close association with a or civilisations. It would also cover important engineering particular historic setting. plans and models, key examples of design and technology The Panel interprets these criteria with some freedom, and scientific apparatus, although we have not yet while maintaining rigorous standards of excellence. completed any offers of such objects. An object needs to meet only one of the criteria in order The criterion for association with a particular setting to qualify as pre-eminent. embraces not only objects currently in a historic building Under the first criterion we would typically include objects but those which may have been removed from it as a result closely associated with historic personages or events or, of sale, inheritance or gift and are being returned to their for instance, with British political, cultural or religious original setting. movements. This criterion typically covers portraits and archives associated with some well-known historic figure. However, it might be extended to embrace, for instance, a collection of classical antiquities which illustrate the importance of the Grand Tour to the formation of national taste in the 18th century; a group of objects brought back from the travels of a famous Victorian explorer or designs relating to the Festival of Britain in 1951. We do not interpret this criterion solely in terms of national history nor do we adopt an elitist approach to what is important for history. The criterion might therefore extend to cover an archive, which is important for an understanding of the history of a region, and views of towns, houses or landscapes or portraits of local worthies, which are significant in a regional context, even if they are not great works of art and are not of national significance. We feel that it is important to give due weight to items the impact and resonance of which are primarily regional.

Acceptance in Lieu Report 2008/09 51 Association with a building Open market price Under the legislation, anything may be accepted when The price at which the object is offered should represent “it appears to the Ministers desirable for the object to the open market price at the time of the offer. Where remain associated with a building.” The building concerned, the open market price is based on a recent saleroom however, must be owned either by the government or comparison, we include the buyer’s premium with the by a heritage organisation, such as the National Trust. hammer price. If comparable objects have been sold at auction or by known private sales through dealers or The wording of the legislation is so all-embracing that agents, it is not too difficult to agree the price. In cases, it could cover an electric cooker in the kitchen or a however, where nothing similar has been sold in recent wheelbarrow in the potting shed. Objects associated years, because of the rarity of the object, its exceptional with a building do not themselves have to be pre-eminent beauty or its historical associations, it may be harder to but the Panel takes account of their contribution to the assess what it might have fetched at auction. An artist may history of the place and to its atmosphere. Furniture have produced only a few great works, all concentrated and china in a historic house need not be of museum in one brief part of his career, and it may be that none quality to be worthy of acceptance in lieu but should of these paintings has been sold on the open market for be attractive and appropriate to their setting. There is many years. In such circumstances, a comparison with a general understanding that, in order to qualify, the recent sales of inferior works from the artist’s oeuvre objects must have been associated with the property might well result in a false valuation. The value of works for a number of years or with a person who lived there by contemporaries may form a better basis for assessing for a significant period. the correct price. The Panel spends a great deal of time testing the Expert Expert advice Advisers’ opinions on price and strives to be scrupulously fair to the offeror. We are not seeking to extract a bargain The Panel always seeks independent advice. Two or more on behalf of the nation but to arrive at a fair price. On a Expert Advisers are appointed in each case, generally small number of occasions, however, we have been unable museum curators or scholars in the field and members of to reach an agreement with the offeror’s agents and have the art trade. These experts examine the object, assess its therefore had to tell the Secretary of State that we could condition and provide written reports to the Panel, advising not recommend acceptance of the offer. whether the object meets any of the criteria listed above, whether its condition is appropriate for museum ownership We emphasise our wish to be fair. When the Expert and whether the price at which it is offered represents the Advisers consider that an object has been offered at a open market price. In the light of this advice and of the valuation below the open market price, we ask the offeror’s collective knowledge of its members the Panel then agent if they wish to revise the price upward. On some makes a recommendation to MLA. When the object is occasions, of course, the offeror may be aware that the offered from a non-English estate or is offered with an offer is below the open market price but is content that the allocation to an non-English museum or repository, the value of the object covers the tax liability and is generously recommendation is made to the Scottish, Welsh or willing to forego any benefit from the higher market price Northern Irish minister, as appropriate. Unfortunately, which might have been agreed. In other cases, where the this increases the time involved in finalizing an offer. agreed value more than covers the tax that is payable, the It is hoped that the handling of such cases can be brought museum or gallery has to pay the offeror the difference in line with those made in England. between the tax liability and the tax that could have been settled by an item at the agreed open market value. When heritage objects are offered which, although The latter are termed “hybrid arrangements”. interesting, are not pre-eminent or are in poor condition and would need substantial conservation, the Panel may suggest to the offeror that some other object from the same collection might be substituted. Where an object is substituted at the Panel’s request, it is treated for taxation purposes as if it had been part of the original offer.

52 Acceptance in Lieu Report 2008/09 Provenance When an offer is made without any condition or wish, the object is also advertised on the MLA website and As a result of the growing awareness of the looting carried the Panel then makes a recommendation to MLA on out under the Nazi regime, the provenance of all objects the basis of interest expressed. In the case of archives, for the period 1933 to 1945 is thoroughly investigated. the Historical Manuscripts Commissioner and Chief In the case of chattels from historic British collections this Executive of The National Archives advises on allocation. is, of course, no problem. Where, however, the ownership history of objects is not documented, in particular in the We are keen to broaden the range of museums and case of paintings by foreign artists, it is necessary to make galleries benefiting from the scheme. We therefore detailed enquiries so as to ensure that objects which were encourage curators throughout the country to watch either looted or sold as a result of duress are not acquired the MLA website so that they are aware of what may be on behalf of the nation. This is inevitably a slow process, available and to make applications for objects which they but it is important to ensure that all possible steps have consider appropriate for their collections. They must be been taken to investigate the whereabouts of objects aware, of course, that they will not always get what they offered for the relevant period. A similarly rigorous would like if there is competition for the same object. investigation is undertaken in respect of the offer of Some curators have been cultivating relations with archaeological items. The provenance has to be fully potential offerors for many years. When these efforts established to prevent the acquisition of objects which have resulted in the object having been on display in the have been improperly excavated or illegally imported into museum or gallery, or on deposit in an archive repository this country. during the owner’s lifetime, it is only right that such arrangements should, normally, continue undisturbed. Allocation Objects can be offered without any conditions, but many offerors are concerned about the future destination of things that they have loved and make their offers conditional upon allocation to a particular museum, gallery, library or archive. If MLA, on behalf of the Minister, agrees that the institution named in the condition is an appropriate recipient, then the object is transferred to that location when the due process has been completed. Alternatively, the offer can be made with a wish, which is not binding on MLA or the appropriate Minister in Scotland, Wales or Northern Ireland, that the object should be allocated to a particular institution. When an object has only been offered with a wish, its availability is advertised on the MLA website (www.mla.gov.uk) and in the Museums Journal and, after considering the responses received, the Panel advises MLA whether the nominated location is in fact appropriate. In most cases the offeror’s wishes are complied with but if, for instance, a similar object is already in the nominated gallery, whereas it is not represented in another equally suitable institution, or if the nominated gallery is unable to provide suitable access, we may recommend that the object should be allocated elsewhere. In all cases, the ability of the museum or gallery to provide adequate and safe display is an essential condition for being considered an appropriate location.

Acceptance in Lieu Report 2008/09 53 In situ offers Time involved On numerous occasions over many years, owners of The processes involved in an offer in lieu are, inevitably, objects on loan to houses belonging to the National Trust time consuming. After HMRC has passed a case to MLA, have offered pictures and furniture with a condition these processes include the Panel’s initial consideration, that they should remain in situ. By an extension of this the appointment of Expert Advisers, the visits of the process, it is possible for an offeror to make an offer of Advisers to see the object and their work in assessing the important contents of a historic house which is not the price, the Panel’s subsequent review of the case, the in public ownership. If these chattels are judged to be agreement of the price with the offerors and their agents, pre-eminent, they can remain in situ on condition that the recommendation to MLA, its decision and the final provision for adequate access is agreed and that security agreements on allocation. Where in situ cases are involved, and conservation arrangements are accepted as it is also necessary to seek conservation and security satisfactory. In these cases, the ownership of the object reports and to agree loan and public access arrangements or the contents of certain rooms is transferred to a suitable between the museum to which the object has been museum or gallery and the owner of the house then allocated and the owner of the property in which it is being enters into a loan agreement with the institution so that retained. The Panel does all it can to minimise delays but, the chattels can remain in their historic location. This where the nation is foregoing large sums of tax, proper is an excellent arrangement whereby groups of particular procedures must be observed in assessing the objects importance can be kept together for the benefit of visitors. on offer. Recent cases have demonstrated that difficulties can arise where there is a reluctance by public institutions to take on ownership and care of in situ objects. As a result, the AIL Panel has recommended and HMRC and DCMS have accepted that anyone making an in situ offer must have identified an institution which is willing in principle to take ownership of the items on offer before they are referred to the Panel. The loan agreement is a complex document, involving as it does both the public and the private sectors in a long term contract. It is widely felt that the existing standard agreement is unwieldy and efforts are currently being made by a small working party to produce a more ‘user friendly’ document. At present there are in situ arrangements covering paintings at Arundel Castle, Dodington Hall, Floors Castle, Holkham Hall, Norton Conyers, Port Eliot, Sledmere House, Highclere Castle and Cawdor Castle, sculpture at Castle Howard and Mellerstain, furniture at Newburgh Priory, furniture and sculpture at Hagley Hall, furniture and tapestries at Houghton Hall, and furniture and paintings at Corsham Court and Longleat.

54 Acceptance in Lieu Report 2008/09 Benefits to the offeror Conditional exemption There are several benefits to the offeror who makes an The Panel also advises HMRC on new cases of offer in lieu to settle an Inheritance Tax liability instead conditional exemption, that is, on heritage objects on which of simply writing out a cheque. Inheritance Tax is deferred provided that adequate public access is given. In the year 2008-09 we advised on 14 Offerors are able to apply a higher portion of the value cases. The process is similar to that in respect of Offers of an object to satisfy a tax liability if they offer the object in Lieu. Owners with potential Inheritance Tax liabilities in lieu than if they sell the same object at auction. This is send a list of the objects which they consider to be eligible because of the special price or ‘douceur’ which is available for Conditional exemption from the tax, along with images in cases of offers in lieu. If, for example, in order to settle and a statement as to why they believe them to be pre- a tax liability, a taxable estate sells an object valued at eminent. Cases are referred to the Panel by HM Revenue £100,000 on the open market, Inheritance Tax is generally & Customs in the first instance. The Panel then selects payable at a rate of 40 per cent (i.e. £40,000) and the appropriate expert advisers for each class of object and, estate only receives a net sum of £60,000. If, however, having considered their reports, informs the Revenue the same object is offered in lieu, 25 per cent of the tax whether it considers that the object or, more usually, that would have been payable (i.e. £10,000, being 25 per objects, meet the criteria as set out in the Inheritance cent of the £40,000 tax payable) is remitted to the estate, Act 1984, as amended in the Finance Act 1998. with the result that the object has a tax settlement value of £70,000. An object is, therefore, worth 17 per cent The Panel has to be satisfied that the object or collection more if it is offered in lieu of tax than if it is sold on the or group of objects is pre-eminent for its national, open market at the same price. This constitutes a scientific, historic or artistic interest and, may take account significant benefit. of any significant association with a particular place when this is relevant. In considering whether an object is of In fact, the benefit may be greater than this. The open national interest. The Panel takes account of an interest market value assessed by the Panel is the hammer price within any part of the United Kingdom. plus the buyer’s premium which is currently as high as 25 per cent. When an object is sold at auction the vendor Owners may also seek exemption for objects on the does not, of course, receive the buyer’s premium. An AIL grounds that they are historically associated with a offer thus gives a major benefit compared to sale at auction. particular building of architectural significance. In such cases, English Heritage advises the HMRC and makes It is worth bearing in mind that, while a sale at auction periodic checks on the exempted objects in their setting. may produce an exceptional price, such a result cannot be guaranteed and, after the sale, tax and interest due The Panel does not make recommendations to the to HM Revenue & Customs must be paid. However, in an Revenue on the requirements for public display of AIL transaction the price is fixed with certainty and interest exempted objects. ceases to accrue from the day on which the offer is made. Furthermore, the agent’s fees to an estate for negotiating an in lieu transaction may well be less than the seller’s commission and publicity costs incurred for sale at auction. There are further attractive, although intangible, benefits. Many owners like to think that objects which may have been in their families for centuries can remain in the UK and they welcome the opportunity of having a say in their allocation. Where an object is offered in situ, it can still remain an integral part of a collection, even though ownership will have changed.

Acceptance in Lieu Report 2008/08 55 Funding for hybrid arrangements Even if the liability of the offering estate were to be as high as £10m, this would still leave the acquiring gallery Sometimes the object that is offered in lieu has a with the need to raise £18m (£28m - £10m) to secure substantially higher value than the offeror’s tax liability. the painting. This sum is far beyond the purchase grant In these ‘hybrid’ situations, as mentioned above, the or acquisition reserves of any UK institution. It is, therefore, museum, gallery or archive that wishes to acquire the highly desirable that additional funds should be made object has to pay the difference between the open market available either through the Heritage Lottery Fund value and the tax liability. or National Heritage Memorial Fund to help such A typical example of a hybrid arrangement occurred in acquisitions. These sources, should, if necessary, 2003 when the Trustees of the Sutherland Estates be supplemented by special government grants. offered a Titian to the Nation in lieu of Inheritance Tax The Waverley Report, half a century ago, at a time of far with the condition that it should be allocated to the greater financial stringency, specifically predicted the National Galleries of Scotland. The acceptance of this need for exceptional Treasury grants to support the important painting could have settled up to £14m of tax. acquisition of exceptional items which were threatened As the actual liability was only £2.4m the balance of with export from this country. The Land Fund was the the price was met by a combination of a major grant alternative. Since then, the Land Fund has been dissolved of £7.6m from the Heritage Lottery Fund, £0.5m from and the National Heritage Memorial Fund created to act The Art Fund and a Special Grant of £2.5m from the as the fund of last resort for the protection of the UK’s Scottish Executive. The National Galleries of Scotland heritage. Its effectiveness has, however, been seriously was itself able to raise £1.0m. compromised by the inadequate level of funding that it The value of the most outstanding works of art has risen has received in the last few years. Although its grant so sharply in recent years that a major painting may be from Government will be maintained at £10m until 2011, worth in excess of £40m. The tax liability of deceased it will not be in a position to assist in more than a handful estates is, however, generally well below such a sum. In of cases each year and at the highest levels of the art consequence, if a really important painting is offered in market, a year’s grant of £10m is insufficient to provide lieu, it will involve a “hybrid” arrangement. If, for example, the UK with the financial strength to compete in the a Picasso is valued at £40m, with a rate of Inheritance world market. Tax of 40 per cent, the acceptance of the painting could settle up to £28m of tax. An inheritance tax liability on the scale of £28m is, however, very rare, given the scope for tax planning that currently exists.

56 Acceptance in Lieu Report 2008/09

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