Charity donations reducing IHT bill
Julie Hutchison's (head of technical insight at Standard Life) response to the change in IHT by HMRC, which details that from 6 April if you leave ten per cent of your estate to charity the tax due may be paid at a reduced rate of 36 per cent instead of 40 per cent.
"The new 36% rate of IHT for estates, where at least 10% of the estate is going to charity, will be welcomed from 6th April 2012 - philanthropy via your Will is being recognised in the tax system.
"On the other hand, charities will be concerned about the ongoing uncertainty of how larger lifetime gifts to charity will be treated after April 2013. The announcement in Budget 2012 of the proposed cap on certain income tax reliefs could well affect how people choose to donate to charity during their lifetimes, and the detailed consultation is awaited."