Drive to improve charitable giving 'flawed'
by Daniel Jones
Plans to encourage more people to recognise good causes when they make a will
have a number of fundamental flaws, one organisation has said.
The Chartered Institute of Taxation (CIOT) believes that the proposals are unnecessarily complex and may even discourage from people leaving money to charity in their wills.
Martyn Gowar, chairman of the CIOT's succession taxes sub-committee, said that the regulations are so complex that even HM Revenue and Customs had to reissue one of its examples after getting it wrong the first time round.
"Another example seeks to explain how a £52,000 legacy can be regarded as ten per cent of an £850,000 estate," he explained.
The group believes that there are other ways to incentivise giving to charity, such as by offering a ten per cent non-repayable inheritance tax credit to all charitable gifts given on death.
It suggested that this concept is easy to grasp due to its similarities with Gift Aid.
Published on: September 5, 2011
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