Leaving money or assets to charity in your will is one of the most powerful ways to support causes you care about, and one of the most tax-efficient. Charitable bequests pass to the charity entirely free of inheritance tax, and if you leave at least 10% of your taxable estate to charity, the inheritance tax rate on the rest drops from 40% to 36%. Around 30% of UK adults intend to leave a charitable gift in their will, but only about 6% actually do - usually because they think it's complicated. It isn't.
This guide covers how to leave money to charity in a UK will, the tax rules, the practical wording, and the questions that come up most often.
Key takeaways:
- Charitable gifts in a UK will are entirely free of inheritance tax - the gift comes off the taxable estate before IHT is calculated.
- Leaving 10% or more of your taxable estate to charity drops the IHT rate on the rest from 40% to 36% (the "reduced rate band").
- You can leave a specific sum, a specific asset, a percentage, or the residue (what's left after other gifts and expenses). Each has different practical and tax implications.
- Always identify the charity by its registered charity number as well as its name - charities merge, rebrand and dissolve, and a clear number prevents disputes.
- You can change a charitable bequest as often as you like by writing a new will. Until you die, the charity has no expectation or entitlement.
Why leave money to charity in a will
Three reasons.
The personal one. A charitable bequest lets you support a cause that has mattered to you - a hospice that cared for a relative, a research charity working on a disease that affected you, an animal charity, a religious or community organisation. Many people find that being able to leave a meaningful gift is more satisfying than smaller lifetime donations they could afford.
The financial one. Charitable gifts are exempt from inheritance tax (IHT). On an estate over the £325,000 nil-rate band, every £1,000 left to charity saves £400 in IHT that would otherwise have been due. The gift effectively costs your other beneficiaries £600 per £1,000.
The reduced-rate one. If you leave at least 10% of your taxable estate to charity, the IHT rate on the rest drops from 40% to 36%. For larger estates this can mean the charity benefits significantly while your family receives almost as much as before. Worked example below.
The four ways to leave a charitable gift
1. A specific sum (a pecuniary legacy)
The simplest. "I leave £5,000 to Cancer Research UK (Registered Charity Number 1089464)." The exact amount, to a specific charity.
Pros: clear, easy to understand, easy to update. Cons: inflation erodes the value over time. A £5,000 bequest written in 2010 is worth substantially less in 2026. Review every few years.
2. A specific item (a specific legacy)
A particular asset - a piece of property, a painting, a share portfolio. "I leave my collection of first-edition books to the British Library."
Pros: lets you direct an item with personal meaning to a beneficiary who will value it. Cons: if you no longer own the item at death, the gift simply fails (this is called ademption). Specific legacies are best for assets you're certain you'll keep.
3. A percentage share
"I leave 10% of my residuary estate to Save the Children." Tied to the size of the estate, so the amount adjusts with inflation and your circumstances.
Pros: keeps pace with your estate. Ideal for the 10% IHT rule. Cons: the actual amount is unknown until probate.
4. The residue (or a share of it)
What's left after specific gifts, debts, expenses, and any inheritance tax. "I leave the residue of my estate to..." Can be a single charity or split between multiple.
Pros: simple, clean, scales with your estate. Cons: the residue is the most variable part of an estate - some beneficiaries find the uncertainty uncomfortable.
Most charitable bequests use a mix: small pecuniary legacies to charities you want to support, plus a percentage or residue gift to your primary cause.
The 10% rule - reduced-rate IHT
Schedule 1A of the Inheritance Tax Act 1984 introduces a reduced inheritance tax rate of 36% instead of 40% where the charitable gift is 10% or more of the taxable estate (called the "baseline amount").
The arithmetic is finicky, but here's a worked example:
Estate of £600,000, single person, no residence nil-rate band claim:
- Nil-rate band: £325,000
- Taxable estate: £600,000 − £325,000 = £275,000
- 10% threshold: £27,500
- Scenario A - no charity: IHT = £275,000 × 40% = £110,000. Beneficiaries receive £490,000.
- Scenario B - £27,500 to charity (10%): IHT = (£275,000 − £27,500) × 36% = £89,100. Beneficiaries receive £600,000 − £27,500 − £89,100 = £483,400. Charity receives £27,500.
- Cost to beneficiaries: £490,000 − £483,400 = £6,600. The charity gets £27,500 but the family is only £6,600 worse off because the IHT saving is £20,900.
For larger estates the effect is even more pronounced. The 10% rule is one of the few areas of UK tax planning where everyone wins: family, charity, you.
Identifying the charity properly
Always identify a charity by both its registered name and its charity number - and if it's a large national charity, include the registered office address as well. The reason: charities reorganise.
- They merge with other charities, often changing name.
- They dissolve and have their assets transferred to similar charities.
- They rebrand. Cancer Research UK was formed in 2002 from the merger of two earlier charities; a will written in 2000 leaving money to one of those predecessor charities still works because the assets passed to the new charity, but a will leaving money to a less-known charity that has since dissolved might pay nothing at all.
A well-drafted charitable clause: "I leave £5,000 to Cancer Research UK (Registered Charity Number 1089464 in England and Wales, Registered Charity Number SC041666 in Scotland), of 2 Redman Place, London E20 1JQ, or its successor charity carrying on substantially the same charitable purposes."
The "or its successor charity" wording is essential. Without it, the gift may fail if the charity has gone or changed name.
Lifetime gifts vs will gifts to charity
Both are IHT-free. The differences:
| | Lifetime gift to charity | Charitable bequest in will |
|---|---|---|
| IHT | Falls outside the estate immediately | Reduces the taxable estate at death |
| Income tax | Eligible for Gift Aid (extra 25% to the charity) | Not applicable |
| Your control | Gift is irrevocable once given | Can be changed any time before death |
| Triggers 10% reduced rate? | No | Yes if 10%+ of taxable estate |
| Liquidity | Need cash now | Out of estate at death |
Most people do both: Gift Aid donations during their lifetime to maximise the income-tax efficiency, plus a meaningful bequest in the will to make a one-off larger contribution.
Trusted Hands wills include charitable bequest support. The guided builder asks if you'd like to leave a gift to charity, captures the charity number correctly, and flags if your gift meets the 10% reduced-rate threshold. Start your will →
Can a charitable bequest be challenged?
Yes, in principle, but rarely successfully. The main route is the Inheritance (Provision for Family and Dependants) Act 1975, under which certain close family members and dependants can apply for "reasonable financial provision" if the will doesn't make any.
A charitable bequest itself isn't usually the target - what gets challenged is when a will leaves everything to charity and disinherits a spouse or dependent child entirely. In the well-known case Ilott v The Blue Cross [2017], the Supreme Court reduced (but didn't fully overturn) a charitable bequest where the testator had cut out her estranged daughter.
The practical takeaway: leaving 10%, 25%, or even 50% of an estate to charity rarely creates issues. Leaving 100% to charity while a financially dependent spouse or child receives nothing is more vulnerable.
A clear letter of wishes explaining the reasoning behind a significant charitable bequest reduces challenge risk further.
Frequently asked questions
How do I find a charity's registered number?
The Charity Commission's register at gov.uk/find-charity-information. Free to search by name or number. For Scottish charities, use the OSCR register at oscr.org.uk. For Northern Ireland, the CCNI register at charitycommissionni.org.uk.
What if I want the charity to use the gift in a specific way?
You can add an "expression of wish" - "I would like the gift to be used for breast cancer research" - but be careful. Strict conditions ("must be used to fund a specific project") can fail if the charity changes its programmes. Soft wording is safer. For very specific giving, talk to the charity in advance about a named restricted fund.
Can I leave my estate to multiple charities?
Yes. You can divide the gift in any way - equal shares between five charities, percentages, fixed sums to some plus a residue split between others. Just keep the list manageable. Twenty charities is hard for executors to administer and the per-charity amount may be uneconomic to distribute.
What if the charity I name no longer exists when I die?
If your will includes "or its successor charity" wording, the gift passes to the successor. If not, the gift may fail and fall back into the residue. The court can sometimes apply the "cy-près" doctrine to redirect the gift to a similar charity, but it's slower and less certain. Always use successor-charity wording.
Can I leave my house to charity?
Yes. Either as a specific gift ("I leave my home at 10 Acacia Avenue to Shelter") or as part of the residue. The charity will usually sell the property and use the proceeds, although some larger charities can accept houses to use directly. Speak to the charity in advance if you intend a major property gift.
Are gifts to political parties IHT-exempt?
Yes, but only to a "qualifying" political party - one that has at least two MPs, or one MP and at least 150,000 votes at the last general election. Confirm with the party before relying on this.
Can I leave money to a foreign charity?
Yes, but only IHT-exempt if it's "established for charitable purposes" within the EEA or another country recognised by HMRC. Gifts to charities outside that scope are not exempt. Take advice for any international charitable gift.
Trusted Hands is a UK will-writing service, not a firm of solicitors and not a tax adviser. Charitable bequests in our guided builder use standard, audited wording. For very large charitable gifts (over 25% of a complex estate), or for restricted/conditional gifts, take advice from a solicitor with experience of charity law.
Make your gift count
Add a charitable bequest to your will in the same guided builder:
- From £49 for a single will
- Charitable bequest wording built in with successor-charity clauses
- 10% reduced-rate calculator flags whether your gift triggers the 36% IHT rate
- Charity number lookup ensures the right organisation receives the gift