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Legacies: Tax Advantages

In the UK, inheritance tax is levied at 40% on the portion of your estate over the value of £325,000 (figure correct to 2012-13)    The College is a registered charity, number 1137458, and as a result gifts to the College as a legacy are exempt from inheritance tax and can therefore reduce the tax liability of your estate.  From April 2011 if you leave 10% of your net estate to a charity, your Inheritance Tax is reduced from 40% to 36%. For further details see the HMRC website on leaving gifts to a charity in your will and the HMRC website on inheritance tax.

Bequests in the USA are also deductible from your taxable estate and can significantly reduce capital gains an estate taxes.  See the Cambridge in America website for more details.

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