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Legal News | 15.07.21

Leaving gifts to charity in your Will


Many people decide to support a charity when leaving gifts in their Will. There are certain tax implications that are worth considering if you plan to make this kind of gift.

Crucially, any gift of any amount made to a UK registered charity is free of inheritance tax. When you include a gift to charity in your Will, this figure will not count towards your nil rate band, leaving the entire band available to reduce the tax impact of gifts to your loved ones. Do bear in mind that gifts to charities based outside the UK are more complicated, so it would be a good idea to seek advice if that is your intention.

Not only are UK charitable gifts free of inheritance tax; they also have the potential to reduce your entire tax bill. If you decide to leave 10% or more of your net estate to charity, your estate can benefit from a reduction in the rate of inheritance tax charged, from 40% to 36%. This lower percentage would be applied to the entirety of your assets, whether or not intended for charity.

So, if you’re already planning to leave a percentage of your net estate to charity, why not round it up to 10%? The outcome – your estate will pay less inheritance tax and your family and the charity will reap the benefits.

To discuss these options further, or enquire about making a charitable gift in your Will, please get in touch with your usual contact at Wansbroughs or email the Private Client team at wealth@wansbroughs.com.


Posted By Our Wills, Tax, Trusts & Probate Team