A CELEBRATED watercolour of a Northern beauty spot, acknowledged to be one of Turner's finest paintings, has been saved for the nation.

The Chain Bridge Over the River Tees, which shows the landscape around the Cauldron Snout waterfall, Upper Teesdale, is one of 24 works of art donated to the state by their owners instead of paying inheritance tax.

The painting will be put on display in the Whitworth Art Gallery in Manchester, where it has been on loan from a private collection since 1991.

Gerry McQuillan, manager of the Acceptance in Lieu (AIL) scheme, which enables taxpayers to transfer works of art into public ownership, said: "It is a very important piece and was singled out in the 19th Century by the great critic, John Ruskin."

The painting is thought to date from 1836 but is based on a sketch made 20 years earlier during one of Turner's visits to the North-East.

It shows the Tees roaring down Cauldron Snout, with a bridge in the background and a gunman shooting grouse in the foreground.

The watercolour forms part of the series of paintings known as The Picturesque Views in England and Wales, which critics regard as one of the artist's greatest achievements.

It was in the collection of Hugh Munro, one of Turner's closest friends, before being bought by a prominent Manchester family. It remained with them until it was offered in lieu.

Although neither the name of the family nor the value of the painting has been disclosed, it satisfied a tax demand of £154,000.

More than 20 other works of art and heritage objects, worth an estimated £20m, were accepted under the AIL scheme last year, including paintings by Constable.

The full list was due to be unveiled by Arts Minister Estelle Morris today at the launch of the AIL annual report in London.

She said: "The Government's Acceptance in Lieu Scheme continues to be a huge success, saving important works of art and other culturally important items for the nation.

"Large or small, each will now be available for everyone to enjoy for all time."

Published: 22/07/2004