13 June 2018
The sector’s legacy consortium, Remember A Charity, has submitted its response to the government’s Inheritance Tax Review. Supported by the Institute of Fundraising and the National Council for Voluntary Organisations, the response highlights the importance of legacy income and inheritance tax (IHT) relief.
Legacy income is the largest single source of voluntary income to the sector, generating over £3 billion each year. A generous system of tax relief means that any legacy gift to charity is currently exempt from IHT (charged at 40%) and a lower rate of tax (36%) is applicable on estates where 10% or more is donated.
Rob Cope, Director of Remember A Charity, says:
“Tax relief should not be considered purely as a saving for the consumer or a cost to government, but as an opportunity to make a real difference to society for generations to come. The current inheritance tax framework encourages legacy giving and normalises conversation around what can still be seen by some as a taboo topic. While IHT may need review, it is essential that any changes will continue to support and encourage gifts in wills.”
“This could be a vital next step towards making the UK the first country in the world where legacy giving is the social norm.”
The consultation response includes three recommendations, which are:
The consultation response is published here: https://www.institute-of-fundraising.org.uk/library/rac-iof-ncvo-response-to-iht-review/
For more information on the government’s inheritance tax review, please see the government’s website.