Budget Reflections for Charities and Legacy Officers

Join Ian Bond, Solicitor at Farewill for this post-budget analysis, looking at the major considerations for charities.

Agenda: (subject to change due to Budget announcement)

1. Welcome & Overview of the UK Budget 2025

2. Key Inheritance Tax changes

• Pensions in Estates: From April 2027, unused pension pots may be taxed unless left to exempt beneficiaries (e.g., charities).

• Frozen IHT Thresholds: Nil-rate bands remain static until 2030, increasing estate exposure.

• Lifetime Gifting Reforms: Potential extension of the 7-year rule to 10 years and / or proposed cap on tax-free lifetime gifts

• Agricultural & Business Relief Adjustments: New 20% tax on assets over £1 million from April 2026.

3. Charitable Giving – Still Tax Efficient

• Gifts to charities remain 100% IHT exempt.

• Estates donating 10%+ of net value benefit from reduced IHT rate (36%).

4. Opportunities

• Rising adviser engagement with legacy giving

• Increased donor interest due to tighter IHT rules

• Campaigning by charities and ILM

5. Actions for Legacy Officers

• Educate donors on tax benefits of legacy giving

• Partner with estate planners and solicitors

• Monitor policy developments and engage in advocacy

• Use data to target high-IHT-risk demographics

6. Q&A – to finish.