Changes introduced from 6th April 2012 reduce the level of inheritance tax from 40% to 36% where 10% of the ‘net estate’ is gifted to charity. We believe each family should consider gifting 10% of the value of their estate, subject to affordability on death. In the case of a married couple, this would normally be on the second death.

The estate’s beneficiaries ‘lose’ £16,200 but the charity gains £67,500. This represents a benefit to the charity of four times greater than the value of the donation, or put another way, an effective tax relief of 76%