Charities and tax
Aside from the declaration in the 2011 budget that testators who leave 10% of their net estate to charity benefitting from a reduced rate of inheritance tax, charities do not have to pay inheritance tax which means there can be tax advantages in making gifts to charity. They can also reclaim income tax that arises during the administration of an estate and do not pay capital gains tax, which can affect the way in which the estate is administered.
