Recent data published by Smee and Ford notes that in the period from 2010 to 2020, more than one million charitable bequests were left in Wills and it is thought that legacy income to UK charities exceeded £23 billion during this time.
In a time when charities are facing unprecedented demand for services, reports also suggest that the number of charitable bequests is predicted to rise by 30% over the next decade.
Gifts to registered charities pass free of Inheritance Tax and if the donation is large enough (at least 10% of the net estate) and provided certain conditions are met, the remainder of the estate is taxed at 36% rather than 40%. Your Will can also be tailored to ensure that your wishes are noted in terms of how you would wish the charitable legacy to be used and in which geographical area you would like to see funds applied.
It is therefore important to think about charitable giving in the context of your own circumstances and to ensure that you take proper advice, both in terms of estate and tax planning, but also to ensure that you are benefiting the cause closest to your own heart.
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