Giving to charity isn’t just about feeling good — it’s also one of the neatest ways to reduce Inheritance Tax.
How it works:
- Anything you leave to charity is free of IHT.
- If you leave 10% or more of your estate to charity, the IHT rate on the rest of your estate drops from 40% to 36%.
That small change can make a big difference — both to your chosen cause and your family.
Extra nuance: Some people prefer to leave a percentage (e.g. 5% of the estate) rather than a fixed sum. That way, the charity’s share rises and falls with the value of the estate, and you avoid awkward outcomes if the numbers change.
Practical tip: Think about causes close to your heart and how much you’d like them to benefit.
Call to action: Review your Will — a small gift can make a big impact.
Back to You are not Immortal – a practical guide to a delicate topic – IHT
