Charity donations could benefit relatives

Julia Kollewe

Giving away 10% of your estate when you die could leave your family better off than making a smaller donation because this would reduce their inheritance tax under new government rules.

The chancellor announced in the budget that those who give away 10% of their income can cut their inheritance tax rate by 10% to 36%. HM Revenue & Customs has now launched a consultation into plans to cut inheritance tax for those who donate money to charity.