Families collectively saved £1.28 billion in inheritance tax during the last year by leaving money to charitable organisations. Donations to charity are exempt from inheritance tax.
Families in the UK saved a total of £1.28 billion in inheritance tax over the past year by choosing to leave money to charity. Donations made to charitable organisations are exempt from inheritance tax.
Furthermore, estates can benefit from a reduced overall inheritance tax rate, dropping from 40 per cent to 36 per cent, if a substantial portion of the estate is bequeathed to good causes.
What this means for you: Leaving money to charity can reduce your inheritance tax liability, potentially lowering the overall rate from 40 per cent to 36 per cent if a significant amount is donated.
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