{"id":1535,"date":"2016-03-03T09:32:30","date_gmt":"2016-03-03T09:32:30","guid":{"rendered":"http:\/\/www.bwmltd.org\/wordpress\/?p=1535"},"modified":"2016-03-03T09:32:30","modified_gmt":"2016-03-03T09:32:30","slug":"giving-to-charity-2","status":"publish","type":"post","link":"https:\/\/www.vizionwealth.co.uk\/news\/giving-to-charity-2\/","title":{"rendered":"Giving to charity"},"content":{"rendered":"<p><strong>Reducing an Inheritance Tax \u2013 it\u2019s good to give<\/strong><\/p>\n<p>A new rule began on 6 April 2012 that reduces the amount of Inheritance Tax due on an estate if at least 10% of the taxable amount is given to a charity \u2013 but not to one of the other exempt bodies, unless of course it is also a charity.<!--more--><\/p>\n<p>An estate can pay Inheritance Tax at a reduced rate of 36% on some assets (instead of 40%) if 10% or more of the \u2018net value\u2019 of their estate is left to charity.<\/p>\n<p>If you planned to give some money to charity already but too little to obtain the 36% rate, and then you raise that to the amount or a little more than is needed to obtain the 36% rate, you may find that your heirs will get more money from your estate.<\/p>\n<p><strong>The net value of an estate is the total value of all the<br \/>\nassets after deducting:<\/strong><br \/>\n\u2022 Debts and liabilities<br \/>\n\u2022 Reliefs<br \/>\n\u2022 Exemptions, for example, anything left to a husband, wife or registered civil partner<br \/>\n\u2022 Anything below the Inheritance Tax threshold of \u00a3325,000 (known as the \u2018nil rate band\u2019)<\/p>\n<p>An estate doesn\u2019t have to pay Inheritance Tax on any\u00a0gifts\u00a0given to charities, museums, universities or community amateur sports clubs.<\/p>\n<p><strong>Which charities you can leave assets to <\/strong><br \/>\nTo pay the reduced rate, the assets must be left to:<br \/>\n\u2022 Charities with an HM Revenue and Customs (HMRC) charity reference number<br \/>\n\u2022 Community amateur sports clubs\u00a0(CASCs)<\/p>\n<p><strong>Writing a will<\/strong><br \/>\nYou can\u00a0write a clause into your will\u00a0to make sure that you\u2019ll leave 10% of your estate to charity.<\/p>\n<p><strong>Change a will<\/strong><br \/>\nThe beneficiaries of an estate can\u00a0change the will\u00a0to make or increase a donation to a charity so the estate<br \/>\nmeets the 10% test.<\/p>\n<p><strong>Opt out of paying the reduced rate<\/strong><br \/>\nIf you\u2019re the executor of a will or administrator of an estate, you can choose to pay Inheritance Tax at 40% rather than the reduced rate \u2013 if the beneficiaries agree.<\/p>\n<p>This can make it easier to deal with the estate, for example, if the cost of getting some of the assets professionally valued would outweigh the benefits of paying the reduced rate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reducing an Inheritance Tax \u2013 it\u2019s good to give A new rule began on 6 April 2012 that reduces the amount of Inheritance Tax due on an estate if at least 10% of the taxable amount is given to a charity \u2013 but not to one of the other exempt bodies, unless of course it&#8230;  <a class=\"excerpt-read-more\" href=\"https:\/\/www.vizionwealth.co.uk\/news\/giving-to-charity-2\/\" title=\"ReadGiving to charity\">Read more &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1535"}],"collection":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/comments?post=1535"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1535\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1535"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1535"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1535"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}