# Remember A Charity calls on government to tackle two threats to legacy income

- Link: https://fundraising.co.uk/2017/03/14/remember-charity-calls-government-tackle-two-threats-legacy-income/
- Published: 2017-03-14T13:34:33+00:00
- Author: Howard Lake

**Remember A Charity is calling on the government to help charities who are facing
two “major threats to legacy income”.**

 

The consortium of charities that encourage more people to leave a gift to charity
in their Will is asking the government:

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 * to make charitable Wills exempt from VAT, and
 * to re-examine the recent decision to increase probate fees.

 

The consortium’s request is part of its wider campaign with government to secure
fiscal incentives that will encourage legacy giving among the full population, not
only those affected by Inheritance Tax (IHT).

 

## VAT exemption for charitable Wills

 

The consortium estimates that VAT exemption on charitable Wills could double the
number of people leaving a gift to charity in their Will. This would generate a 
further £800 million a year for good causes, and cost government just £375,000.

 

Legacy giving remains the single largest source of voluntary income, generating 
£2.5 billion a year. Last year there were 37,262 charitable estates in the UK.

 

Rob Cope, Director of [Remember A Charity](http://www.rememberacharity.org.uk), 
commented: “Charities are facing two major threats to legacy income. We know that
IHT exemption is a powerful motivator for financial advisers to raise the issue 
of legacy giving with clients and to encourage people to give.

 

“But from April, the IHT threshold is going up and it will be relevant to fewer 
people, which means that solicitors will have to approach the topic of legacy giving
in a different way. Together with the hike in probate fees, this is a double whammy
that could have a detrimental impact on legacy giving and their family estates.”

 

> “We need to ensure that legacy giving is not just something reserved for the wealthiest
> in society”.

 

He added: “We are calling on government to introduce a VAT exemption on the cost
of writing all Wills that include a charitable gift. While this change would come
at a relatively low cost to government, this could make a huge difference to charities,
giving solicitors and Will-writers cause to highlight the option and benefits of
legacy giving with all clients.

 

“We need to ensure that legacy giving is not just something reserved for the wealthiest
in society; that it is something we are all given the opportunity to do.”

 

The Institute of Fundraising and Charity Finance Group are supporting Remember A
Charity’s call for VAT exemption on charitable Wills and the broader principle of
developing fiscal incentives that benefit anyone who chooses to leave a legacy to
charity.

 

## Probate fees

 

Probate fees have jumped recently to £215, but from May 2017 a sliding scale of 
fees will be introduced, starting at £300 for estates worth between £50,000-£300,000
and ending at £20,000 for those above £2 million.

 

Andrew O’Brien, Head of Policy and Engagement at Charity Finance Group, said: “It
is important that the government does not undermine existing incentives through 
increasing probate fees on estates that leave money to charity which could have 
significant unintended consequences. The government should also align its tax policy
so that unseen taxes such as VAT support the government’s objectives to increase
charitable giving.”

 

## Institute of Legacy Management “very disappointed”

 

The [Institute of Legacy Management](http://legacymanagement.org.uk) (ILM), which
responded to the Ministry of Justice consultation last year on probate fees, is “
very disappointed” that the Courts Service is pushing ahead with these changes “
despite overwhelming opposition”.

 

It is concerned that donors, charities and beneficiaries will all be affected by
this change, and estimates that it will reduce income for charities by around £18
million a year.

 

## Petition to government

 

A petition “[to reconsider the proposed significant and unreasonable increase in probate fees](https://petition.parliament.uk/petitions/188175/)”
has been launched on the Government’s petitions site. It has attracted over 7,000
signatures already.

 

 

 

https://twitter.com/RememberCharity/status/841619603117744129

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