"Charitable giving through inheritance tax" to be consulted on

The government has launched a consultation regarding a proposal that the inheritance tax (IHT) rate should be lowered for those who gift money to charity when they make a will.

Today (June 10th) HM Revenue & Customs said that views on the measure – which will see estates that leave a charitable legacy of at least ten per cent of their net estate having their IHT reduced by ten per cent – were welcome.

People interested in wills and probate have been told that the consultation, A New Incentive For Charitable Legacies, will look at policy details and how the proposals should be carried out.

Justine Greening, economic secretary to the Treasury, said: "This reduced rate of IHT should provide an extra incentive for people to use their estate to support worthy causes and we very much hope that this consultation will mean we can get the details right so it can make a real difference."

The chancellor announced the measure as one component of a large philanthropy package announced during the Budget.

At the time, George Osborne said that he hoped the measure would make it the norm for people to give to charity when they make a will.
Published by Hannah Carr