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Remember A Charity welcomes Government’s decision to keep IHT incentives in place for individuals who choose to leave a legacy gift to charity

Following the Chancellor of the Exchequer Rachel Reeves’ Autumn Budget statement delivered earlier today, the UK consortium of charities Remember A Charity has welcomed the Government’s decision to keep inheritance tax (IHT) incentives in place for individuals who choose to leave a legacy gift to charity.

Alex McDowell, Vice Chair of Remember A Charity said that
fiscal incentives play an “important role in inspiring more people to leave a legacy gift” and “encouraging professional advisers to make their clients aware of the option and benefits of including a charity in their will”. He added:

“Legacy gifts are not only a deeply meaningful way of giving, but they are vital to society, helping to fund everything from hospice care to emergency services, homeless charities to community care supporting people who are alone and vulnerable. The Government’s preservation of these crucial incentives is instrumental in helping to safeguard the long-term sustainability of charitable causes in the UK. These incentives could become even more impactful should more estates qualify for IHT as a result of the IHT thresholds being frozen.”

Remember A Charity also hopes that the 2% productivity and efficiency savings target set for all Government departments next year will mean that further improvements will be seen in the probate service. In recent months, the situation has seen marked improvement — something that Remember A Charity would like to see continue. McDowell commented:

“A smooth-running probate service can reduce the stress experienced by bereaved families. It can also ensure gifts kindly included in charity supporters’ Wills can be put to good use sooner, enabling charities to plan and deliver their essential services.”

 Remember A Charity had called on Government to protect the fiscal incentives that encourage legacy donations, and had earlier this year presented evidence to the Parliamentary Inquiry pertaining to the importance of a well-run and well-funded probate service.  The consortium promises its member charities to continue to work with the Government and policymakers to influence and shape the future legacy giving landscape for the benefit of charities, supporters and bereaved families.

Matthew Lagden, CEO of the Institute of Legacy Management (ILM) has also welcomed the Chancellor’s decision to keep IHT relief for charitable gifts in Wills and to maintain the exemption from capital gains tax on the sale of property or assets donated to charity. He says:

“Charities rely heavily on legacy giving and there will be a unanimous sigh of relief within the charity community that the Chancellor has seen fit not to make any changes to this incredibly important pipeline of financial support.”

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