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Readers’ forum: Inheritance tax savings on giving to charity

31 January 2022
Issue: 4826 / Categories: Forum & Feedback
Gift to charity

My client has asked me about the inheritance tax saving from executing a deed of variation in favour of a charity.

Because the residue of the estate is split equally between himself and his two siblings he wonders whether it is possible for the inheritance tax saving (at 40%) to be allocated entirely to him – so for example if the charity received £10 000 it would ‘cost’ him £6 000 as a reduction in his net share of the estate. I expect this is possible but would appreciate any advice readers may have about possible complications.

I recall that it may be possible for him also to claim gift aid for income tax on the £10 000. Can readers confirm whether this is still the case and if there are any conditions that have to be met to enjoy this double helping of tax...

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