Legal row over Reynolds prompts change to tax law

One of the amendments listed in the Budget this year includes closing a tax loophole that has previously been used to exempt Old Masters from capital gains tax (CGT).

The change has been made following a case involving Joshua Reynold’s 1776 masterpiece, Portrait of Omai. The painting was in the possession of Castle Howard for over 200 years until it was sold at auction in 2001 following the death of Lord Howard. It fetched a hammer price of £9.4million, which was the record for Reynolds at the time. Continue reading