The Legacy10 legislation aims to incentivise people to leave at least 10 per cent of their estate to charity. In return, any potential Inheritance Tax charges will be cut from 40 per cent to 36 per cent. This means an estate worth £750,000 would pay £117,000 IHT instead of £130,000, report Goldsmith Williams.
Linda said:
“We have a lot of clients looking for ways to help reduce their potential Inheritance Tax liability and Legacy10 is an excellent starter for ten. It is a great way for people to donate to their chosen charity whilst helping to reduce the tax implications for the estate and so increase the inheritance for those who will benefit from the estate, resulting in a win win situation.”
The move has been welcomed by the Prime Minister, David Cameron who sees charity gifting very much a part of his Big Society vision. Along with Sir Richard Branson and Boris Johnson, he has backed the new Bill by pledging to give money to charity in his Last Will and Testament. Nick Clegg and Ed Miliband have also got on board, despite their conflicting views on Inheritance Tax.
Currently, 74% of Britons give money to a charity during their lifetime, however, only 7% actually leave anything to charity in their Will. By encouraging legacy giving through inheritance tax mitigation, the hope is more people will consider a charity in their Will.
