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17 April 2012
Guidance and worked examples available
HMRC have published guidance on the reduced rate of inheritance tax, 36% rather than 40%, that estates can pay for a 10% donation to a registered charity with effect from 6 April 2012.
Included are some worked examples of the calculations involved.
The proposed legislation can be located in the current Finance Bill, clause 207 and Sch 32.
In addition a new reduced rate calculator will either work out the charity donation required to qualify for the reduced rate or will show whether a bequest already made is sufficient to qualify for the reduced rate.
The Inheritance Tax Manual will be updated soon. In the meantime a draft of the new guidance for the manual is available.
