MAKE THE PROMISE AND LET THE TAXMAN PAY FOR MOST OF IT.

None of us likes to consider our mortality, but death and taxes are two certainties in life.

Whilst you may not be able to avoid tax completely, charity legacies are one way of making your Will more tax efficient. Charity legacies can now cost your loved ones just a fraction of the amount you leave to the charities. This results from a reduced rate of Inheritance Tax where you leave at least 10% of your estate to charity, after deducting your tax free allowance. Let’s have a look at an example. Say there is a taxable estate of £1 million (that is after deducting the Inheritance Tax free allowance of £325,000). Look at the following two scenarios below:


Scenario A
Taxable estate £1,000,000
Charitable donation £0
Revised taxable estate £1,000,000
Inheritance Tax @ 40% £400,000


Available for family & friends £600,000


Scenario B
Taxable estate £1,000,000
Charitable donation £100,000
Revised taxable estate £900,000
Inheritance Tax @ 36% £324,000


Available for family & friends £576,000

For further information, click here.

CONTACT HARVEY BRATT ON 0207 424 6431 OR HARVEY.BRATT@UJIA.ORG TO FIND OUT MORE.