Proposals to introduce Charitable Remainder Gifts to the UK have been under discussion for a number of years (and the initiative has previously been known as Living Legacies or Lifetime Legacies). Professional advisers believe that this new form of tax effective giving could stimulate significant new philanthropy in the UK and add another option to the “giving toolkit”.

When making a Charitable Remainder Gift the donor makes an irrevocable commitment to give to the charity.  The sum is put into a suitable vehicle from which the donor receives an income during their lifetime. This income is subject to Income Tax. However, the initial investment is deemed to be a gift to charity for the purposes of Capital Gains Tax and Inheritance Tax.  The donor also benefits from a one-off calculation of Income Tax relief for backward or forward offset.  The benefits for charities are that it creates supporter engagement with a living person and the charity is guaranteed future income which is not the case with a legacy pledge made in a Will. The donor benefits as they have financial security for life whilst having made a gift to charity.

CTG representatives sit on the steering group that has developed the Charitable Remainder Grant proposal and has been involved in promoting this form of new giving incentive for many years. You can find out more details about the proposal here.

For further information or to get express your support for this campaign please contact John Pepin at john.pepin@philanthropy-impact.org or info@charitytaxgroup.org.uk