The three main candidates in the London Mayoral election have pledged to leave 10 per cent of their estate to charity in support of the Legacy10 campaign.
Current mayor, Boris Johnson, along with Labour and Liberal Democrat candidates, Ken Livingstone and Brian Paddick have all chosen to give money to charity in their Last Will and Testament in return of a 4 per cent inheritance tax rate reduction (from 40 per cent to 36 per cent).
Johnson is keen for others to embrace the Legacy10 campaign:
“I think this is a fantastic idea, rightly promoting leaving a legacy for charitable purposes in order to ensure that this becomes the norm rather than the exception to the rule.”¹
The Prime Minister, David Cameron, his Deputy, Nick Clegg, and Labour leader, Ed Miliband, has also promised to donate 10 per cent of their estate despite their conflicting views on Inheritance Tax.
Legacy10 is designed to raise the profile of charity donations. Currently, 74 per cent of Britons give money to a charity during their lifetime. However, only 7 per cent actually leave anything to charity in their Will. By incentivising legacy giving through inheritance tax mitigation, there is hope more and more people will consider a charity in their Will.
Linda Cummins is the Head of Estate Planning at Goldsmith Williams:
“We have a lot of clients looking for ways to help reduce their potential Inheritance Tax liability and the Legacy10 campaign is an excellent starter for ten. However, it is by no means the only tool for Inheritance Tax mitigation.
“We are experts in finding solutions for higher net worth individuals, business owners and families who want to minimise inheritance tax. By placing your needs at the centre of our bespoke service, you and your family will benefit from a highly comprehensive, tailor-made package which reflects your situation, objectives and addresses any challenges arising from your circumstances. This will be Your Lifetime Plan.”
¹Civil Society (Feb 2012)