Tax relief for legacy gifts

In the event of death an individual’s assets and liabilities pass on to their estate. If the value of the estate, after settling any outstanding debts, exceeds a certain amount the Inheritance Tax is charged on the balance.

Inheritance Tax is charged at 40% on estates exceeding the threshold of £325,000 per individual from April 2009 (often referred to as the nil rate band). As of 7th October 2007, a surviving spouse or civil partner may use any nil rate band that their spouse, or civil partner, did not use against their estate in addition to their own nil rate band – thus increasing the threshold for married couples and those in a civil partnership to £650,000. Certain assets are excluded from the calculation, for example, anything that is left to a spouse or civil partner. The nil rate band will remain at these rates until at least 2014/2015.

The example below highlights the potential tax relief given on an estate and amount of inheritance tax payable if the donor a) left a legacy gift to the University and b) left no legacy gifts in their Will to charity. A larger example can be found here.

If you are making, or amending, your Will in favour of the University of Southampton, we recommend that you consult a legal advisor.

For further information please email Ellie Shaw or phone on +44 (0)23 8059 9079.

Tax relief for Legacy Gifts

Tax relief for Legacy Gifts

The example below highlights the potential tax relief given on an estate

Related pages:

How to make a gift, How to leave a legacy to Southampton, Tell us about your legacy,

Key facts