A Titian masterpiece was saved by the scheme

Art treasures valued at �40m have been saved for the nation in the past year by people donating art works rather than paying inheritance tax.

Titian's masterpiece Venus Anadyomene, watercolours by Edward Lear and a Barbara Hepworth sculpture were among works handed over.

Many of them had been in danger of being sold abroad because their owners faced huge tax bills.

They were donated under the government's Acceptance In Lieu (AIL) scheme to national and regional museums, including the Tate, the National Gallery, the Victoria and Albert Museum and the British Library.

The scheme has settled tax bills worth more than �6.5m during the past year.

Arts Minister Estelle Morris said: "There really are some breathtaking works amongst the cases this year."

Titian's Venus Anadyomene, which depicts Venus emerging from the sea, previously belonged to the Duke of Sutherland.

It was acquired by the National Galleries of Scotland earlier this year for �11.6m, with part of the price offset by the Treasury in tax duties.