From April 2012, the Chancellor has introduced a reduced rate of inheritance tax.

If you leave 10 per cent or more of your estate to charity on death, the rate of inheritance tax on the part of your estate that is chargeable, will be reduced from 40 per cent to 36 per cent.

The proposals broadly mean that for deaths occurring on or after 6 April 2012, estates that include charitable legacies of at least 10 per cent of the net estate will benefit from the reduced 36 per cent rate.

There are a number of technical points to determine if the charitable legacies 10 per cent target has been met. Your solicitor can advise you further on this area if this is of interest to you.

More information

Find out more about inheritance tax and charitable giving on the HMRC website.