The Finance Bill and charities

The Finance Bill has good and bad news for charities. We welcome the new tax relief for gifts of pre-eminent objects and works of art – and indeed the reduction in Inheritance Tax for those leaving 10% or more of their estate to charity – but on the other hand, from next April, HMRC is removing the ability to donate part or all of a tax rebate to charity.

Truth to tell the latter never provided large sums to charity and given the administrative burden on HMRC it is perhaps not surprising that it has gone. While the gifts of objects and works of art may not apply widely, the reduction of Inheritance Tax from 40% to 36% for those giving over 10% of their estate is something that we consider charities should start selling to their supporters in time for next April when the measure is due to take effect.