Various charity tax exemptions can help increase the value of the legacy the British Red Cross receives. Providing the legacy administration team with a copy of the schedule of assets and liabilities will help us to ascertain whether you can help us maximise our entitlement.
The HM Revenue & Customs website will help guide you and factsheets are available on the Institute of Legacy Management website.
Inheritance tax is charged on some estates, but charities are usually exempt. Find out if the estate you are administering is liable for inheritance tax.
For more information, including current rates, please download our inheritance tax PDF.
Capital gains tax
Capital gains tax arises when an asset, such as shares or property, gains value from when it was valued for probate, above a set level. As a charity, the British Red Cross is exempt from paying capital gains tax (CGT).
To find out more about preventing CGT liabilities, please read our capital gains tax PDF.
Income received by the estate, including any which was paid prior to death, such as interest from bank or building society accounts, can still be taxed.
Charities can recover most of the income tax paid on their share, but only once the legacy has been partly or fully distributed to them and only at the rates in force in the year of distribution.
You can help the British Red Cross reclaim this income by completing a tax deduction certificate.
Deed of variation
A deed of variation is used to change the will where it is in the interests of all affected beneficiaries.
A deed of variation can only be entered into within two years of the date of death and with the agreement of all beneficiaries. If you think that a deed of variation would be beneficial to the estate you are administering we strongly recommend that you seek legal advice from a solicitor first.