Leaving part of your estate to charity when you die can help to slash thousands of pounds off its inheritance tax (IHT) bill.
If you leave 10 per cent or more of the value of your estate to charity, the rate at which your estate pays IHT drops from 40 per cent to 36 per cent, thanks to a rule introduced in 2012. That’s a saving of £76,000 on an estate worth a net £1 million, after all debts and tax exemptions are taken into account, according to the wealth manager Saltus.
While many people have standing orders giving cash to charities, or volunteer at a food bank or community project, few may realise the tax benefits of leaving cash to charities in their wills.
