THE UK government has launched a consultation paper proposing to
change the inheritance tax rules, whereby those who leave a charitable legacy
may see a drop in the rate to tax.
The
tax cut forms part of a charitable giving reform package, and is designed to
increase donation levels. It has been proposed that those leaving a charitable
legacy of 10% or more of their net estate will be eligible for a 10% reduction
in the inheritance tax rate leading to an effective rate of 36%. The Chancellor
of the Exchequer, Mr. Osborne is reported to have said of the measure: "I want
to make giving 10% of your legacy to charity the new norm in our country".
The
consultation will remain open till 31 st August, 2011.
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