Reduce your inheritance tax

 

Leaving 10% to charity in your Will  

Did you know that by leaving 10% of your taxable estate to charity, you can actually increase the amount your other beneficiaries receive?

As of 6th April 2012, anyone leaving 10% of their taxable estate to charity will qualify for a reduced rate of inheritance tax (IHT), from the normal level of 40% to the reduced rate of 36%.

Using this basic example based on an amount of £100,000, you can see that leaving 10% to charity, will leave your other beneficiaries more than if you were to leave 9% and make no difference if you were planning on leaving 4%:

 % of taxa​ble estate left to charity 

 3%     

 4%    

 9%    

10%     

 Inheritance Tax rate

 40%

 40%

 40%

 36%

 Amount beneficiaries due

 £58,200    

£57,600     

 £54,600    

 £57,600    


Please note that we strongly advise that you seek professional advice when it comes to making or amending your will.