TAX PLANNING

Charitable Gifts

CHARITABLE GIFTS

Giving to charity to reduce an Inheritance Tax bill

As a bonus to encourage charitable giving, an estate can pay Inheritance Tax at a reduced rate of 36 per cent on some assets (instead of 40 per cent) if 10 per cent or more of the net value of their estate is left to charity.  It may not be a huge saving, but it means that family and friends will receive more than they would do otherwise, while your favourite charities also benefit.