With the government proposing an IHT break for individuals making charitable donations in their will, Prudential's Gerry Brown explains why you should consider an offshore structure
It has been estimated that as much as 74% of the population give to charities during their lifetime, while only 7% make charitable bequests through the medium of wills. For deaths on or after 6 April 2012, it is proposed that estates providing charitable bequests of at least 10% of the net estate will benefit from a 36% rate of IHT (compared with the main IHT rate of 40%). The 10% test Whether or not the 10% threshold has been met (‘the 10% test’) will be determined by comparing: (a) the total value of charitable legacies for IHT purposes; and (b) the value of the net estate for...
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