Treasury extends IHT discount for charitable giving

Scott Sinclair
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The Treasury has extended its proposal to introduce a lower rate of inheritance tax (IHT) where people leave a charitable legacy of 10% or more on death.

Announced in draft legislation for the Finance Bill today, the government said all assets within an estate will be eligible for the reduced 36% rate if the charitable legacy from that estate, or part of that estate, passes the 10% test. Previously, the proposals related to the deceased's free estate - assets transferred under a Will or via intestacy - only. For the purposes of the measure, the estate will be divided into three parts: the free estate; survivorship property (assets which would pass automatically to a surviving joint owner; and settled property (assets in a trust). Th...

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