Save Inheritance Tax with Donations to Charity

Published / Last Updated on 08/12/2023

What is a Charitable Gift?

If you make a gift to a charity, community amateur sports club, museum or university, these are immediately exempt from inheritance tax and you do not have to play the 7 year 'waiting game' that applies to Potentially Exempt Transfers.

See: Inheritance Tax PET

Making Gifts to Charity Via Your Will

You can make gifts to charity in your Will on death.

These gifts are either:

  • taken off the value of your estate before Inheritance Tax is calculated (at 40%)
  • or if 10% or more of your estate is left to charity, the gift to charity will NOT be taken off the value of your estate for tax calculation but your inheritance tax rate overall will be reduced from 40% to 36%.

You can donate monetary amounts or any other items in your Will such as property, a valuable car, antique or artwork as you see fit, and the probate value will be used at date of death.

See our Wills & Estate Fees: Wills & Probate

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