For UK tax payers, after 1 April 2012 the rate of inheritance tax on an estate reduces to 36% where at least  10% of the taxable part of the estate (ie after deducting the nil band rate and any gifts that quality for exemption from IHT — other than the charitable donations themselves) is left to charities.

Gifts to charities are already exempt from inheritance tax. The reduction in the rate of tax on the remainder of the estate makes the cost of gifts to charity cheaper.

Please contact us if you are thinking about this form of giving.