UK Iheritance Tax and Charities

July 2011

There is now a reduced rate of UK inheritance tax (IHT) of 36% for estates that provide that more than 10% or more will pass to charity. UK IHT is generally charged at the rate of 40% in excess of the exempt threshold (for 2011 Stg£325,000).

This new reduction has the effect that charities as opposed to beneficiaries will benefit.