Many people may be aware that leaving a gift to charity upon their death will not be subject to inheritance tax. More people are also becoming aware of the benefits of agreeing to Gift Aid in respect of donations made from their income.
However, as charities are also feeling the adverse effects of the country’s current economic plight, for those people who are minded to, there are options available where you can benefit your favourite charities other than on death and which may also have beneficial consequences for your own tax position.
Making a cash gift holds no taxation consequences for either the recipient or the donor, and similarly, people with share portfolios could consider transferring the shares directly to a charity as, under current legislation such a gift would not be subject to Capital Gains Tax as a disposal by the individual - it would also provide income tax relief. It's worth bearing in mind, however, that if the shares would create a loss in the hands of the individual, such loss cannot be claimed on a transfer of shares to a charity.
Of course, if you are thinking about making any gifts you should always consider your own personal finances and whether you can afford to make a gift and this is especially true for those who are either receiving care at home through a Local Authority or are already in residential or nursing home accommodation. Any person considering a substantial donation should seek advice from their solicitor.
At FDC Law our specialists are always available to discuss any of these issues.
For more information contact us via the website.
Divorce and separation are never easy, but they could be about to get a lot harder.
Under plans contained in the government’s Green Paper on Legal Aid, Legal Aid will cease to be available for anyone seeking a divorce, or to resolve issues relating to children or finances following a separation, save in very limited circumstances, where children are at risk of being taken into Care, or where there are high levels of Domestic Violence.
Marjorie Taylor, head of the Family law department, spoke to BBC Somerset’s Matt Faulkner, on Tuesday 8th February, about the impact of the cuts:
For more information on this story, click here:
A survey of over 50 charities by Remember A Charity found unanimous support for the regulation of the will-writing sector as a third of those surveyed had experienced “negative impacts of the sector not being regulated”, such as loss of income, whilst poorly drafted wills had given 53% of them problems.
As a result, 52% of charities had had to engage solicitors to sort out the problems and 48% reported that the time to get the money was significantly increased. The survey also found that a third received a smaller than expected legacies and 11% lost the legacies entirely.
Remember A Charity is part if the Institute of Fundraising, with a separate membership of over 140 charities, including 9 of the top 10 charities by voluntary income. The survey was conducted as part of Remember A Charity’s response to the Legal Services Consumer Panel’s call for evidence as it investigates the need for regulation of the sector.
The House of Commons has produced a paper on the regulation of will-writers to assist MPs in the debate. The paper can be found here.
If you need help with your Will, please get in touch with FDC-Law via our website.
