A reminder that the new reduced rate of Inheritance Tax is now in force. It applies to deaths occurring after 5 April 2012. Where more than 10% of the net estate is given to charity, the rate of tax applying to the rest of the estate is reduced from 40% to 36%. Charitable gifts are of course tax exempt.
There are two main actions: First, consider whether you should be giving 10% or more to charity in your own Will. Second, if you are a beneficiary under the Will of someone who has died since April, you may wish to consider entering into a Deed of Variation to make or increase the charitable gifts in order to qualify for the lower rate.
Are you taking advantage of this reduced rate? Leave your comments and questions below.
blogs by the Stewardship team and selected guest writers.