Will you be taking advantage of reduced Inheritance Tax (IHT)?

David Cameron, Nick Clegg and Ed Miliband have all agreed to give one tenth of their estates to charity when they die.

In an unusual cross-party move, the three leaders have signed up to support a campaign called Legacy10 to promote charitable giving.  Under government plans to promote the campaign – which Mr Cameron sees as part of his Big Society agenda – new inheritance tax laws will also encourage legacy giving.

Delighted: Labour leader Ed Miliband said he was happy to join the PM in supporting the initiative.

With effect from April any estate which leaves at least 10 per cent of its taxable wealth to a charitable cause will be able to take advantage of a reduced rate in inheritance tax, from its current level of 40 per cent down to 36 per cent.

The leaders join a growing band of businessmen and celebrities who have made the pledge, including Sir Richard Branson, architect Lord Rogers, Charles Dunstone – co-founder of The Carphone Warehouse – the banker Jacob Rothschild and Olympics boss Lord Coe.

Downing Street confirmed that Mr Cameron and Mr Clegg had agreed to sign up to the pledge.

In a statement to the Mail, Mr Miliband said last night: ‘I’m delighted to be supporting this important initiative. I hope the commitment will encourage many others to consider committing to leaving 10 per cent of their estate to charity in their will.’

Leading lobbyist and PR man Roland Rudd, founder and chairman of Legacy10, said: ‘I am so pleased all of our main political leaders have not only chosen to support Legacy10 but have made a personal commitment to change their wills to make the pledge.’

 

 

Mr Cameron is paid £142,500 but is thought to be worth several million pounds. His aides have denied suggestions he is worth £30million.

 

 

Cabinet ministers such as Mr Clegg are paid £134,565 and Mr Miliband gets the same.

 

At the moment 74 per cent of people support a charity during their lifetime but only 7 per cent of the UK population leave a charitable gift in their will.

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