In 2011 the Chancellor introduced a new Inheritance Tax relief in the budget. At present, many estates, even quite modest ones, will incur Inheritance Tax of the order of 40% on their net value; that is, on the amount remaining after the payment of debts and funeral expenses, and the deduction of the value of bequests to a spouse or to a charity or other exempt organisation. The effect of the new relief is that those leaving 10% or more of their estate to a charity will benefit from a reduction in the rate at which they pay Inheritance Tax, thereby reducing the net cost of the bequest to the estate. All charitable legacies are themselves exempt from Inheritance Tax, and whatever you decided to leave to Peterhouse will go directly to support the work of the College. If you do decide to remember the College in your will, then please let us know so that we can add you to the list of members of the William Stone Society.
HM Revenue & Customs guidelines on Inheritance Tax can be found on their website.