Finance | Charlotte Watts | 26 Sep 2008

Is the nil rate band change bad news for charities? Charlotte Watts

When an individual dies, the starting point is that everyone’s estate is liable to inheritance tax at 40 per cent. This is important to charities as gifts to them are exempt from inheritance tax. If someone does not wish to pay inheritance tax on their estate, one way of avoiding it is to leave legacies to charities.