IHT—reduced (36%) rate for estates leaving 10% or more to charity

Copyright © 2025 LexisNexis
Produced in partnership with Katya Vagner of Fladgate
Practice notes

IHT—reduced (36%) rate for estates leaving 10% or more to charity

Copyright © 2025 LexisNexis

Produced in partnership with Katya Vagner of Fladgate

Practice notes
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FORTHCOMING CHANGE relating to introduction of residence-based IHT regime: Following previous announcements, the government published draft legislation at Autumn Budget on 30 October 2024 to replace the current domiciled-based assessment of Inheritance tax with a new residence-based system with effect from 6 April 2025. The changes will bring non-UK assets within the scope of IHT if the owner has been resident in the UK for ten tax years. As a result of these changes and transitional provisions, the excluded property status of non-UK situs settled assets will also change for IHT purposes. See News Analysis: Autumn Budget 2024—Private Client analysis — International.

FORTHCOMING CHANGE relating to changes to APR and BPR: At Autumn Budget 2024 on 30 October 2024, the government announced an intention to significantly reduce the amount of APR and BPR on qualifying property from April 2026. Subject to consultation (expected in early 2025), the 100% rate of relief will be restricted so that it will no longer apply to the whole value of the qualifying agricultural

Katya Vagner
Katya Vagner

Solicitor, Fladgate

Katya Vagner (Ekaterina Vagner) is an associate in the Private Client department at Fladgate.

She specialises in advising on a wide range of UK and offshore private client legal and tax matters.

Katya advises individuals and business owners, their families, family offices, trustees, personal representatives and charities across the globe on issues such as estate and succession planning (including Wills and inheritance tax advice), setting up and advising on onshore and offshore structures (such as trusts and foundations), incapacity planning (including Lasting Powers of Attorney and Court of Protection matters), administration of trusts and estates and issues involving charities (such as advising on charitable giving and advising charities on a range of legal and tax issues).

Katya has a keen interest in ESG initiatives and has a growing charities and philanthropy practice, advising on structuring of UK and cross-border charitable giving and administering charities.

Recognised as one of the 2019 eprivateclient Top 35 Under 35 advisers, Katya is a native Russian speaker and is a full member of the Society of Trust and Estate Practitioners (STEP), the Law Society Private Client Section and the Charity Law Association. Katya has written for industry publications including the Tax Journal, CityWealth Magazine and the Journal of International Tax, Trust and Corporate Planning.

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Charity definition
What does Charity mean?

A charity is an institution which is established for charitable purposes only and falls to be subject to the control of the High Court in the exercise of its jurisdiction with respect to charities (Charities Act 2011, s 1)

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