Inheritance Tax (IHT) is on many people’s minds right now, especially with changes to pension rules coming into effect from April 2027.
If you’re considering gifting assets to reduce a potential IHT bill, it’s important to understand the rules as they can be complex. In the UK, gifts aren’t always immediately excluded from your estate for IHT purposes. Charitable giving can be a tax efficient way of giving back to your community:
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- Gifts to charity: Completely exempt from IHT.
- Annual exemption: You can gift up to £3,000 each year, and this is immediately outside your estate for IHT purposes.
- Regular gifts from surplus income: These can be exempt straight away, but specific conditions apply, so professional advice is recommended.
- Legacies gifts: If you leave at least 10% of your net estate to charity you may qualify to pay IHT at a reduced rate of 36%.
Thinking about making a gift?
Rules around IHT can be complicated, and every situation is different. We strongly encourage you to seek independent financial advice before making any decisions.
If you’re considering charitable giving as part of your estate planning, supporting local causes through Cumbria Community Foundation will make a lasting difference in our county. Trusted as one of Cumbria’s foremost grant making organisations, you can be assured that every gift, large or small, will help create opportunities and strengthen communities.
Whether you’d like to set up a personal fund, contribute to a community fund, or leave a lasting legacy, we make giving simple and rewarding.
You can read more here about the Edwin and Anita MacKay Fund, established with a legacy gift from a local couple to benefit the next generation in the village they lived in.
How charitable giving helps
Through donations, we can fund projects like Triple A (All About Autism) which launched three weekly Positive Pals groups across North Cumbria supporting autistic adults.
These groups offer a safe, friendly place to meet and connect, helping people build confidence, reduce anxiety, and form lasting friendships. The project has also strengthened Triple A’s post-diagnosis support in partnership with the NHS, helping participants feel more engaged and less isolated. Sheila Gregory, Chair of the project, said: “This funding has enabled us to create spaces where neurodiverse adults feel accepted, supported, and celebrated. For many, it’s the first time they’ve felt truly understood, and that’s life changing.”
Triple A’s Positive Pals groups demonstrate the power of peer-led, neuro-affirming support in tackling loneliness and improving wellbeing for autistic adults in Cumbria.
Get in touch
To find out more please contact Jackie Blacklock, Relationships Officer on 01900 512392 email jackie@cumbriafoundation.org or Caroline Adams, Development Manager on 01900 820825 email caroline@cumbriafoundation.org .