 |
| LATEST LATEST LEGAL NEWS ARCHIVE |
LATEST NEWS & EVENTS Inheritance tax relief 'will stimulate charity giving'  Changes to the rules on wills and inheritance tax planning will "reinvigorate" the Big Society, it has been claimed. The Society of Trust and Estate Practitioners (STEP) said it welcomes the Treasury consultation on the proposed inheritance tax relief. Announced by chancellor George Osborne earlier this year, the plans would mean inheritance tax is reduced from 40 per cent to 36 per cent when ten per cent or more of an estate is given to charity. STEP chief executive David Harvey said: "This policy is innovative and, if implemented sensibly, may succeed in significantly driving forward charitable giving." He suggested that the new policy will encourage more solicitors offering wills and inheritance tax planning advice to bring up donating to charity with clients. "If this talk turns into action and people start leaving legacies in higher numbers then that may help reinvigorate the Big Society," Mr Harvey said. STEP also stressed that the changes to the inheritance tax rules will mean anyone with a will should seek advice on how their estate could be affected. The organisation has led calls for the will writing industry to be more tightly regulated after its own research reveals the extent to which "cowboy" will writers were producing badly drafted documents. Jeremy Tucker, head of private client at Lamport Bassitt, said: "It is certainly hoped that charities will benefit from this inheritance tax concession. The reduction in the rate from 40 per cent to 36 per cent will be attractive to some individuals with larger estates." He noted that an HMRC spokesman has been recently quoted as saying that only around three per cent of estates pay inheritance tax, "so the number of estates that will benefit from this reduction will be quite limited". Mr Tucker continued: "However, it would seem that the reduction is such that whilst it will be advantageous to individuals already planning to give away more than ten per cent of their estates with a value in excess of £1 million it will reduce the inheritances of the non-charitable beneficiaries under the will. Therefore, it may not appeal to individuals for tax planning purposes. "If individuals do wish to take advantage of this reduction in inheritance tax then their wills may need to be updated." Posted by Alex McLean 
Related Articles: 17/5/2012 - Discussing death remains taboo as wills and inheritance tax planning suffers 11/5/2012 - Queen's Speech legal reforms welcomed 4/5/2012 - Create Lasting Power of Attorney before it's too late 2/5/2012 - Support for will writing regulation grows 25/4/2012 - Inheritance tax planning could net £450m a year in savings More Individual Legal Services News |
|||
| © 2012 Lamport Bassitt | DEFAULT ZOOM | DISABILITY INFORMATION | LEGAL INFORMATION |