Charitable Legacies - IHT incentive
Inheritance Tax incentives to be introduced for charitable legacies
Following the announcement in the 2011 Spring Budget, HMRC issued a consultation on 10th June – ‘A new incentive for charitable legacies’. It is anticipated that for deaths after 6th April 2011 there will be a reduced rate of inheritance tax on estates where 10% of the estate is gifted to charity. The reduced rate will be 36%. The gift to charity will remain exempt from IHT as is the case now.