What you need to know about IHT and charitable giving

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AXA Wealth's Brian Murphy looks at the implications of the recent HMRC consultation on inheritance tax for people who leave a charitable legacy in their will.

On 10 June 2011, HMRC published a consultation document – A new incentive for charitable legacies – which set out suggestions regarding the policy detail and implementation of a lower rate of inheritance tax where people leave a charitable legacy of 10% or more of their estate when they die. The stated aim of the policy is to encourage charitable giving and to build a more socially conscious society. The new legislation will be relevant for deaths occurring on or after 6 April 2012. Estates that include charitable legacies of at least 10% of the net estate will benefit from a 36% rate of...

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