Angela Foyle, tax partner at BDO, explains how proposed inheritance tax breaks to encourage charitable legacies could work in practice for your clients.
As part of the Government’s focus on the “Big Society”, details of the previously announced proposal to give an inheritance tax (IHT) incentive to encourage people to leave legacies to charities were published at the end of last year. How effective these are remains to be seen. Essentially, if a person leaves at least 10% of their net taxable estate to charity they will receive a 10% reduction on the rate of IHT payable on the rest of their estate. The proposal explained To qualify for the proposed relief, legacies need to be left to a charity or other organisation in the UK, Europ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
