Neil MacGillivray: The double benefit of charitable gifting through a will

We are all aware that gifts to charities are exempt from inheritance tax (IHT), however, the added attraction of leaving 10% or more of a person's ‘net estate' to charity - meaning the rate of IHT reduces from 40% to 36% - makes such provisions in a client's will very appealing. That said, understanding how the rules apply and maximising the tax benefits are critical. The first step is working out the net estate value on which the 10% threshold will be based, this is known as the ‘baseline amount'. The baseline amount is calculated on the net value of the estate charged to IHT, after ...