# Inheritance Tax rise could cost charities dear

- Link: https://fundraising.co.uk/2014/12/03/inheritance-tax-rise-cost-charities-dear/
- Published: 2014-12-03T09:28:31+00:00
- Author: Howard Lake

Wills and tax law specialists Moore Blatch have warned that if the Government raises
the Inheritance Tax nil-rate band from £325,000 to £1 million in today’s Autumn 
Statement, many people will be put off from leaving money to charity in their Will.

At present, if an estate is worth over £325,000 when you die, Inheritance Tax may
be due. However, any gifts made to a qualifying charity either during an individual’s
lifetime or in their Will, are exempt from Inheritance Tax.

In addition, if you leave 10% or more of your estate to a qualifying charity, any
Inheritance Tax due from the estate may be paid at a reduced rate of 36% instead
of 40%. This can mean that a gift to a charity can cost nothing to the beneficiaries.

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Moore Blatch has warned that the charities most likely to be affected are those 
that receive significant annual legacies. [According to Charities Aid Foundation](http://charitytrends.org),
the five charities in England and Wales that received the largest amounts of legacy
income in the year to October 2014 were:

1. Cancer Research UK: £142,456,707

2. RNLI: £101,457,157

3. RSPCA: £67,671,000

4. Macmillan Cancer Support: £51,219,000

5. The National Trust: £44,688,000

Smaller charities are of course not immune.

Carla Brown, Partner and Head of Wills, Tax and Trusts, [Moore Blatch](http://www.mooreblatch.com)
commented:

> “Smaller, local charities also benefit greatly from money left to them in the 
> Will of kind benefactors. Although an IHT nil-rate band increase to £1 million
> seems unlikely in view of the continued deficit in the country’s finances, any
> increase would almost certainly have an impact on people’s propensity to leave
> money to charity. We would urge anyone who wants to give money to a charity to
> make the appropriate provision in their Will.”

_Photo: [legacy](http://www.shutterstock.com/pic-103711184/stock-photo-legacy-isolated-word-in-vintage-letterpress-wood-type.html)
by Marekuliasz on Shutterstock.com_

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