Leaving charitable gifts in your will is an easy, impactful way to support causes you care about. Whether it’s a fixed sum, a specific item, or a share of your residuary estate, legacy giving can make a lasting difference – and it can be tax-efficient. Gifts to UK-qualifying charities are usually exempt from Inheritance Tax (IHT).

Ways to leave a gift to charity

  • Pecuniary gift: a specified sum of money left to a named charity.
  • Specific gift: a particular item (e.g. property, jewellery, artwork, shares).
  • Residuary gift: all or a percentage/share of your residuary estate (what remains after other gifts, debts and expenses).

You can combine gift types and you can also benefit more than one charity. If you want your executors to choose (or choose from a list), you can arrange for your solicitor to draft a clear charitable power with a fallback to protect tax relief.

Identifying a charity correctly

Avoid confusion by using the charity’s full name, registered address and registration number. Include a successor/similar charity clause so the gift can still be applied if your chosen charity merges or ceases to exist. (Courts can apply the cy-près doctrine where the original purposes cannot be carried out.)

Inheritance Tax benefits

Gifts to UK-qualifying charities are IHT-exempt. If you leave 10% or more of the baseline/net estate to charity, the IHT rate on the remainder may reduce to 36%. Because the 10% test can be technical (and may be applied to components of the estate), your solicitor can help to ensure that the wording meets the ‘10% test’. The effect can be modelled using HMRC’s reduced-rate calculator.

Ensuring your Will is valid

Your will must be in writing, signed by you, and witnessed by two independent people. They must not be a beneficiary of the will or the spouse or civil partner of a beneficiary. If your circumstances change, you can make a new will or add a properly executed codicil (a legal document that makes changes to an existing will).

Practical steps and professional advice

  • Be specific: make your instructions clear.
  • Keep records: tell your executors where the will is stored.
  • Appoint executors: ensure that they are people you trust (family, friends or professionals).
  • Seek advice: engage the services of a solicitor to ensure that the will is valid, gifts are identified properly, and clauses are tax efficient.

Optional planning tool: Under current legislation, beneficiaries may use a Deed of Variation, within 2 years of death to redirect part of an inheritance to charity; HMRC must be notified of the charity to ensure correct IHT treatment.

Conclusion

Leaving a charitable legacy enables you to support causes that matter to you and can reduce your estate’s IHT. For best results, take advice so that your will is clear, valid and tax efficient.