Majority of professional advisors think Inheritance Tax changes will produce more charitable legacies
Howard Lake | 16 June 2025 | News
Research from Remember A Charity reports that, following the announcement of Inheritance Tax changes in the 2024 Autumn Statement, solicitors, Will-writers and financial advisers are already seeing a rise in enquiries about estate planning and leaving a bequest to charity.
The research is part of annual benchmarking study carried out by Savanta for the consortium of UK charities working to grow the legacy giving market.
The research found that:
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- 6 in 10 professional advisers think Inheritance Tax changes will prompt growth in charitable legacies
- 92% of professional advisers believe that estate and tax planning will become even more important following the Inheritance Tax (IHT) changes announced in the 2024 Autumn Statement;
- 60% say they are already receiving more requests for advice;
- 62% think more people will consider leaving a gift to charity.
Inheritance Tax changes
In the Autumn Budget 2024, the Chancellor announced that Inheritance Tax (IHT) thresholds would remain frozen until 2030, and that, from April 2027, pension wealth would no longer be exempt from IHT. It is estimated that the proportion of estates facing an IHT bill will almost double by 2030.
This increases the scope for estates to benefit from charitable gift exemptions and the reduced rate of IHT (36%), which applies to estates where 10% or more of net value is donated to charity.
Only 15% of the professional advisers surveyed think there will be no discernible impact from the changes.
Tanya Watson, Chartered Tax Adviser and Senior Director at Alvarez & Marsal Tax LLP, said:
“The changes to IHT are prompting a fundamental reassessment of estate planning strategies, particularly among clients who may not have previously been impacted. What we’re seeing is a growing need for tailored advice that balances financial objectives with personal values. Charitable giving can be a highly effective planning tool, and these changes provide a timely reason for advisers to revisit legacy plans with clients who may not have considered this route before.”
Advisers’ role in growing legacy giving
Professional advisers play a valuable role in generating charitable gifts in Wills, and Remember A Charity has worked with advisers over many years to support this role.
In 2023 72% of solicitors and Will-writers said they always or sometimes proactively raise the charitable option with clients, and in 2024 that had risen to 77%.
An average of 21% of Wills written through a solicitor or Will-writer now including a donation. This rises to 24% amongst those who always reference charitable legacies with clients and falls to 14% of those who never do.
Tax incentives are the most prevalent reason advisers give for raising the topic of legacy giving with clients. 92% of solicitors and Will-writers and 86% of financial advisers in the study say they always or sometimes advise their Will-writing clients of the charitable tax incentives.
Lucinda Frostick, Director, said:
“Professional advisers can have a profound impact on clients’ decision-making. While talking philanthropy isn’t always their comfort zone, fiscal incentives are – forming a natural starting point for approaching charitable giving. Even though the reasons for giving extend far beyond tax incentives, these IHT changes make the legacy conversation more relevant to a wider group. They present an ideal opportunity for advisers to raise the topic, building understanding of legacy giving and inspiring more clients to support the causes they care about.”
Eleanor Evans TEP, Partner, Trusts and Estates Administration at Hugh James, says:
“We’re already seeing an increase in clients seeking early advice on estate planning. Many people choose to leave legacies to benefit a cause they care about, and the tax breaks for gifts to charity provide an added incentive. As more estates will become liable for IHT once the changes take effect, charitable giving is becoming an increasingly important part of the estate planning conversation.”
The 2024/25 Remember A Charity annual benchmarking study is based on in-depth telephone interviews with 237 solicitors, professional Will-writers and independent financial advisers across the UK. The research was carried out between November 2024 and February 2025.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.