IHT rate to be lowered for charitable giving?

People who decide to leave money to charity when making a Will may soon benefit from paying a lower rate of inheritance tax, under new government proposals.

A consultation has been launched on the issue by HM Revenue and Customs (HMRC) to help gauge public opinion on the measures, which could lead to a ten per cent reduction in inheritance tax.

This, however, would only be the case for individuals who leave a charitable legacy of ten per cent or more of their net estate.

"We very much hope that this consultation will mean we can get the details right so it can make a real difference," commented Justine Greening, economic secretary to the Treasury.

It was recently claimed by chartered accountants UHY Hacker Young that HMRC is clamping down on estates that have been wrongly valued and carried out 9,368 investigations into such issues last year.

Published on: June 10, 2011

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