Do charitable gifts in a will reduce inheritance tax?

Yes. Charitable gifts are exempt from inheritance tax and reduce the taxable estate. If you give at least 10% of your net estate to charity, the inheritance-tax rate on the remainder drops from 40% to 36%.

How do I name a charity in my will?

Use the charity's full name and its registered charity number to avoid ambiguity. A residuary or pecuniary gift can be used, and a substitute clause helps in case the charity later merges or changes name.

Can I leave money to charity in my will?

Q: Can I leave money to charity in my will?

Yes. You can leave any amount — a fixed sum, an item, or a share of your estate — to charity. Gifts to UK-registered charities are free of inheritance tax, and leaving 10% or more of your net estate to charity reduces the IHT rate on the rest from 40% to 36%.

England & Wales · Wills · Inheritance Tax

Quick answer

Yes. You can leave any amount to charity in your will — a fixed sum, a specific item, or a share of your estate. Gifts to UK-registered charities are free of inheritance tax, and if you leave 10% or more of your net estate to charity, the inheritance-tax rate on the rest drops from 40% to 36%. It's a popular way to support a cause and reduce tax.

Detailed explanation

Charitable giving in a will is both straightforward and tax-efficient — the law actively encourages it.

Ways to give

Pecuniary gift — a fixed sum of money.
Specific gift — a particular item or asset.
Residuary gift — a share (or all) of what's left after other gifts.

The tax advantages

Charitable gifts are exempt from inheritance tax, reducing the taxable estate.
Leave 10%+ of the net estate to charity and the IHT rate on the remainder falls to 36%.

Getting it right

Name the charity accurately and include its registered charity number, so there's no doubt which organisation you mean.

Example scenario

An estate of £600,000 would face 40% inheritance tax above the nil-rate band. By leaving 10% of the net estate to charity, the gift is tax-free and the rate on the remaining taxable estate falls to 36% — so more goes to both the charity and the family than a straight 40% bill would allow.

What happens next?

Complete the questionnaireA few guided questions about you, your family and your wishes.
Human reviewYour answers are checked by the ClearLegacy editorial team for completeness.
Receive your documentsYour will and supporting paperwork are produced, ready to print.
Sign correctlyClear instructions on signing and witnessing so the will is legally valid.
Protect your familyYour wishes are recorded and your loved ones are spared the intestacy default.

Sources

GOV.UK — Inheritance Tax: leaving gifts to charity
HMRC — reduced rate of Inheritance Tax (36%) for charitable giving
Wills Act 1837, section 9 — legislation.gov.uk

Reviewed by: ClearLegacy editorial team
Last reviewed: June 2026
Next review: December 2026
Jurisdiction: England & Wales

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