Tax rule changes to encourage legacy giving

As of 6th April 2012, a new rate of inheritance tax will apply where at least 10% of the taxable amount of the estate is left to charity. The normal rate is 40% on any estate over £325,000, but this rate is reduced to 36% where 10% of the taxable amount is given to charitable causes.

The Law Society Gazette has reported that three-quarters of the UK population contribute annually to charity but only 7% leave a gift to a charity in their Will. The Legacy10 campaign aims to increase awareness of the benefits of charitable giving and to increase the amount left to charities. See their website for more information.