Inheritance tax reliefs for legacy gifts to charities

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There are a number of very valuable reliefs for legacy giving to charities.

S23 of IHTA 1984 confirms that transfers of value to UK charities or registered community sports clubs (CASCs) are exempt for Inheritance Tax purposes (IHTM11101). More specifically, IHTA84 S23 exempts a transfer of value (IHTM04024) to the extent that the value transferred (IHTM04028) is attributable to property which is given to charities or registered clubs.

Property is given to:

charities if it becomes the property of charities or is held on trust for charitable purposes only (IHTA84/S23(6)(a)).
registered clubs if it becomes the property of registered clubs or is held in trust for the purposes of registered clubs only (IHTA84/S23 (6)(b)).

The exemption has no value limit. It applies to both lifetime and death transfers, including transfers of settled property in which the deceased/transferor had a qualifying interest in possession (IHTM16061).

There are a number of other very valuable reliefs for legacy giving to charities. Follow the links to find out more about:

Reduced inheritance tax rate where at least 10% of a net estate is left to charity.

CTG does not provide tax advice and so the information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.