Government aims to encourage legacies
With only seven percent of people leaving money to charity via a legacy, the government has publicly lent its support to the Legacy10 campaign, which aims to encourage more of us to leave money to charity in our will.
Initially introduced eight months ago, the government revealed new inheritance tax legislation which stated that inheritance tax would be slashed from 40 percent to 36 percent on estates which left at least 10 percent to a recognised charity. This incentive is to remain in place until at least 2020.
The Legacy10 campaign will see an appointed official working to encourage the top 250 UK companies to provide support and assistance to colleagues who would like to leave some of their estate to charity.
In return, all charities will need to declare their income from legacies in their annual report, also giving details of their strategy to develop this income stream.
Suggestions to reduce the amount of tax paid by individuals who have declared an intention to leave a charitable legacy; and officially honoured businesspeople to be forced to give evidence of donations to charity however, are not supported.