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.