Speaking out for legacies
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As we head towards this year’s Autumn Budget Statement, due on 26th November 2025, Inheritance Tax is rarely far from the headlines. While the Chancellor’s focus will inevitably be on how to balance the books, Remember A Charity has come together with the Chartered Institute of Fundraising (CIOF) to underline the need to protect the fiscal incentives for gifts in Wills and to remove the barriers for donating from a pension.
After the announcement in the 2024 budget that unused pension pots would be included in the scope of inheritance tax (IHT) from April 2027, there has been much debate about how this change this could impact legacy giving.
On one hand, it could encourage charitable gifts in Wills, with donors and their advisers coming together to explore a range of tax mitigation strategies. But the uncertainty and complexity around the new proposals could also have the reverse effect and stall giving for some.
To address this issue, in recent weeks we have filed joint submissions with the CIOF to HM Treasury’s Budget portal and to the House of Lords Finance Bill Sub-Committee, calling for the barriers to tax-effective pension giving to be removed and highlighting the need for clearer guidance for the public on any incoming IHT changes.
Our submissions emphasise the vital need to preserve the current fiscal incentives – where legacy gifts are tax-free and estates donating 10% or more can qualify for a reduced IHT rate of 36%. These incentives not only encourage generosity, but crucially they help to normalise this vibrant area of philanthropy, promoting discussion of charitable legacies amongst professional advisers, clients and others.
We’ll share any further news post the budget announcement in late November.