With effect from April 6, charitable giving was given a boost by means of extra Inheritance Tax (IHT) relief.
Essentially, where you leave at least 10% of your estate to one or more registered charities, the IHT rate payable on the balance of your estate will be reduced by 10%, i.e. from 40% to 36%. But will this leave your beneficiaries better off?
If you were planning to leave 10% or more of your estate to charity then the new IHT relief will be welcome news for you and your beneficiaries as the lower tax rate on the remainder of the estate will leave more in the pot for them.
Where you are leaving around 4% of your estate to charity, boosting the donation to 10% can reduce the overall IHT bill so this might be worth looking into.
If you like further information please contact one of our offices or e-mail us at info@mbmcgrady.co.uk.