In last week’s budget Chancellor George Osborne announced that inheritance tax will be cut by 10 per cent for those who donate at least a tenth of their wealth to good causes.
The move is part of a push from the Government to encourage more people to leave legacies to charities and the arts. The initiative, known as ’10 for 10', is likely to cost the Government around £170 million a year over the next five years, but estimates suggest it could lead to an extra £300 million in donations by 2015.
From April 2012, the inheritance tax rate will be cut to 36 per cent for those who leave 10 per cent or more of their estate to charity. Inheritance tax is charged after someone’s death if they leave assets or property worth over £325,000.
Osborne told the Commons, "If you leave 10 per cent or more of your estate to charity, then the government will take 10 per cent off your IHT rate. Let's be clear: no beneficiaries will be better off, just the charities to the tune of £300 million. I want to make giving 10 per cent of your legacy to charity the new norm in our country."
