After years of delay, $1.4 million in cash and assets related to the Bluenose II will finally be transferred to the provincially run foundation that oversees the ship.

The deal to transfer the assets from the Bluenose II Preservation Trust Society to the Schooner Bluenose Foundation was struck in 2010.

The move was held up over concerns that the taxman would take a big cut, said Senator Wilfred Moore, chairman of the trust.

Moore said the Canada Revenue Agency allowed the handover to proceed. "The CRA, knowing that we were interesting in getting this done, worked with us."

The transfer to the foundation includes the Bluenose II store in Lunenburg, intellectual rights and $700,000 in cash.

Moore said Thursday the transfer of the assets in relation to the store is complete and the rest should be done in a few weeks. The Preservation Trust Society will then be wound up.

He said his group has donated the painting Bluenose II Abeam of Peggy's Cove Light by Tom Forrestall to the Art Gallery of Nova Scotia.