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...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.