Charitable Giving

Below is an excerpt from my article about tax relief on charitable giving, published in this month’s edition of the Seer Green & Jordans Parish Magazine.

Making a gift to charity, either during your lifetime or in your Will, will not only give you a warm glow of having done your good deed for the day; it will also benefit from lavish tax relief, designed to incentivise charitable giving. 

Lifetime Gifts to Charity

Lifetime gifts to charity are immediately exempt from inheritance tax – there is no need to survive 7 years, nor to stay within certain allowances.  In addition, the charity can reclaim income tax under the Gift Aid scheme, which increases the size of a taxpayer’s contribution without costing either the taxpayer or the charity an extra penny, meaning that your £1 donation is worth £1.25 to the charity. 

If you’re a higher rate taxpayer, the news is even better – you can reclaim the difference between higher rate and basic rate income tax on your donation, so for every £1 you donate, you can claim back 25p in tax relief, in your tax return. 

Charitable Giving in your Will

If you leave a gift to charity in your Will, there will be no inheritance tax payable on that part of your estate. If you leave 10% or more of your estate to charity then your whole estate will benefit from a reduced rate of inheritance tax at 36%, rather than the usual 40%.

Make a Free Enquiry

Chiltern Wills is a friendly, professional Will writing business run by former London solicitor Rebecca D’Arcy and based in Beaconsfield. Call us on 01494 708688 or make a Free Online Enquiry to discuss charitable giving in your Will.

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