Charities get taxation boost

CHANGES to inheritance tax rules in yesterday’s Budget means that those leaving 10 per cent or more of their estate to charity will now also get a 10 per cent tax relief on their donations.

Charities welcomed the move, but accountancy firm KPMG called the 10 per cent target for donations “ambitious”, and said the net rate reduction would only work out to four per cent, falling from 40 per cent to 30 per cent.

The chancellor also made adjustments to gift aid rules, raising the benefit limit from £250 to £5000 to allow “thank you gifts” for significant donors.