How leaving a gift in your Will can help reduce Inheritance Tax
Inheritance Tax used to be something only ‘Wealthy’ people needed to consider. But soaring house prices in recent years mean that many homeowners should check as they may be liable.
Inheritance Tax is paid when a person’s estate is worth more than £325,000 when they die.
Inheritance Tax is currently charged at 40%. If your estate is going to be affected by Inheritance Tax, you can reduce the amount that is taxable in two ways:
- Any gift you leave to charity will be deducted from your estate before any tax liability is calculated.
- You can reduce Inheritance Tax from 40% to 36% if you leave 10% or more of your net estate to charity. This was changed by the Government from April 2012 to incentivise Gifts in Wills.
Download our booklet about Inheritance Tax. If you are affected, speak with your financial advisor or solicitor.