Reducing your Inheritance Tax bill
You can reduce your Inheritance Tax rate if 10% or more of your estate is left to charity.
If you would like more information on leaving a gift to NYJO in your Will, please contact NYJO’s Head of Development Debbie Forwood.
How do I make a Will?
We recommend using a Will-writing professional such as a solicitor. Preparing a Will is not a difficult or expensive process and could save your family a lot of time and expense later.
A good place to start is the Society of Trusts and Estate Practitioners (STEP) or the Law Society for England and Wales. They will all supply you with a list of people who can help you in your area.
When talking to a professional you may wish to have made a note of your assets and the approximate value of any particularly valuable items.
It’s never too early to start writing a Will because you can always amend it at any time in the future with a simple document called a codicil.
What if I already have a Will?
If you are only making a limited number of small straightforward changes you can amend your existing Will using a short, simple legal document called a codicil. You will need to get this witnessed in the same way as your Will. A solicitor can prepare this for you at very little cost.
What can I give to NYJO?
There are essentially two different types of gift that you can make to NYJO in your Will:
- A specific sum: here you state the specific amount of money that you would like to leave to NYJO. This can be as small or as large as you would like.
- A gift of the whole or a proportion of the residue of your estate: here you leave what remains of your estate after all the other specific gifts and legacies that you want to make have been paid out. This type of gift has the added benefit of keeping its value over time because it will not be so affected by inflation.
Remember: no gift is too small to make a difference.
What are the benefits of leaving a gift in my Will?
There may be tax benefits to leaving gifts in your Will. Because NYJO is a registered charity, all gifts in Wills made to NYJO are exempt from UK inheritance and capital gains tax. Depending on tax rules from time to time, if you leave more than a certain percentage of your net estate to charity, the Inheritance Tax rate on the whole of your taxable estate may be reduced. Under current rules, if you leave 10% or more of your chargeable net estate to a charity or combination of charities, the inheritance tax rate on the whole of your taxable estate is reduced from 40% to 36%.
What should I include in my Will?
A solicitor can advise on the exact wording. The following are examples of the sort of wording you could include:
- Example wording for a gift of a specific sum:
I give, devise and bequeath to The National Youth Jazz Orchestra Limited (‘NYJO’) of Woolwich Works, The Fireworks Factory, 11 No.1 Street, London SE18 6HD registered charity number 274578 the sum of £ [X -INSERT AMOUNT] (X Pounds) for its general charitable purposes and I declare that the receipt of any officer of NYJO shall be a good and sufficient discharge and receipt for this.
- Example wording for a gift of the reside of your estate:
Subject as aforesaid I give, devise and bequeath to The National Youth Jazz Orchestra Limited (‘NYJO’) of Woolwich Works, The Fireworks Factory, 11 No.1 Street, London SE18 6HD registered charity number 274578 [the whole] [or] [enter fraction or X % (e.g. one quarter or 25%)] of my residuary estate for its general charitable purposes and I declare that the receipt of any officer of NYJO shall be a good and sufficient discharge and receipt for this.
Get in touch
If you would like to discuss anything to do with making a gift to NYJO, please contact our Head of Development, Debbie Forwood.
This note is not intended to constitute legal advice but only to provide preliminary guidance. We recommend that you seek your own professional legal advice if you are making a new Will or amending an existing Will.