The Government has recently launched a consultation on its proposals to encourage charitable giving by charging a lower rate of inheritance tax (IHT) on estates that leave a legacy to charity.

The consultation document,  “A new incentive for charitable legacies,” sets out the proposals announced by the Chancellor at the Budget that estates can reduce their inheritance tax rate by 10% (to 36%) when they leave a charitable legacy of 10% or more of their net estate.

Justine Greening, Economic Secretary to the Treasury said:

“The British public are some of the most generous donors to charitable causes in the world. The Government’s philanthropy package announced at this year’s Budget represented the most radical reforms to charitable giving for more than twenty years and is designed to encourage further financial support for charities. This reduced rate of IHT should provide an extra incentive for people to use their estate to support worthy causes and we very much hope that this consultation will mean we can get the details right so it can make a real difference.”