Table of Contents
Why it matters whether the estate passes to a qualifying charity #
Broadly, assets that pass to a qualifying charity are exempt from Inheritance Tax. It is likely that any assets passing to a qualifying charity will be exempt of inheritance tax. But there are some restrictions to this exemption.
What is meant by qualifying charity #
By qualifying charity, we mean a charity established in the European Union (or other specified country) which:
- Would qualify as a charity under the law of England and Wales.
- Is regulated as a charity in the country of establishment (if appropriate).
- Has managers who are fit and proper persons to be managers of the charity.
Other qualifying bodies #
Other qualifying bodies include UK national organisations such as the National Trust and National Gallery.
Please Note: If you are not sure if an organisation is a qualifying charity or UK national body you should call the probate helpline on 0300 123 1072.
Assets which pass to a qualifying charity #
The legacy must pass directly and unconditionally to the organisation. It must not pass into a trust for the benefit of the organisation concerned.