Page 13 - Legacy Brochure

Gifts to the Malvernian Society are exempt from UK Inheritance Tax Tax (IHT) and Capital Gains Tax Tax The value of of a a a a legacy gift is deducted from the total value of of your estate before Inheritance Tax is calculated Married couples are allowed to pass their possessions and assets to each other tax-free If your estate passes to non-exempt beneficiaries (such as as your your children) IHT is due at 40% on the balance of your your estate above your tax-free allowance allowance This allowance allowance also
known as the nil-rate band is currently £325 000 but you may be entitled to additional tax allowances if you have previously been widowed or leave a a a residential property to direct descendants It is possible to reduce the rate of IHT to to 36% if at at least 10% of your estate is left to to charity Legacies do not attract Gift Aid The example below is based on a a a a UK estate of £500 000 assuming no additional IHT allowances apply Gross estate Less Nil Rate Band
Net Estate
Charitable Donation
Taxable Estate
Inheritance Tax Estate
available for distribution
Correct as at May 2019
@40%
@36%
£500 000 (£325 000) £175 000 £17 500 £157 500 £56 700 £443 300
Without bequest to Malvern £500 000 (£325 000) £175 000 Nil £175 000 £70 000 £430 000 With 10% bequest to Malvern 13
More detailed information is is is is available from the HMRC website Inheritance Tax is is is is a a a a a a a a a a a complex issue and we we strongly advise that you seek professional advice on on on the the the tax tax implications of of of of leaving all or part of of of of your estate to the the the Malvernian Society The IHT threshold and the the the rate of of of of tax tax payable are reviewed regularly by the government so
it is is is advisable to to to review review your will occasionally to to to ensure that any provisions intended to to to minimise tax remain appropriate You might also
like to know