The present Inheritance Tax (IHT) framework offers generous financial incentives for the practice of legacy giving, which is a growing revenue stream for charities based in Britain. As a result, the not-for-profit group Remember A Charity is calling on policymakers and ministers to consult with its sector to make sure that legacy income will remain protected if IHT is abolished.
UK savers with concerns regarding IHT often reach out to experts in estate and retirement planning in Shropshire, Derbyshire and other counties. Wealth managers work closely with their clients to provide effective strategies which can dramatically reduce the size of final tax bills payable by beneficiaries on a person’s estate when they pass away.
More than 50 MPs have now called for the abolishment of IHT. Reportedly, the UK Government is currently considering including the proposal to end the tax in the latest Conservative manifesto.
Director for Remember A Charity, Lucinda Frostick, recently stated that the call for changes to IHT fails to consider the potential effect on legacy giving and how vital an income stream it is for charities based in Britain. She explained that legacy giving is critical for thousands of community-based organisations and charities, building resilience and long-term income that have provided a lifeline in the present economic climate. She commented:
“We will be urging government and policymakers to consult with us and the wider sector to explore the likely impact on charities of proposed changes.”
Charitable gifts included in wills are exempt from IHT; those who donate at least 10% of their estate enjoy a discounted IHT rate.