What is the charity exemption?

It is one of two key inheritance tax exemptions, the other being the spouse and civil partner exemption.

What is a "qualifying" charity?

A gift in a will to any charity registered in England and Wales will qualify for the relief.

If you are unsure whether a body is a registered charity, search for the name on the Charity Commission website. All but the smallest registered charities must show their charity registration number on advertising and fundraising material, including their website.

Exempt from inheritance tax

A gift to a charity in a will is entirely exempt from inheritance tax (it’s a 100% inheritance tax relief).

There is no upper limit. For example, a gift of £10 million to one or more charities will be exempt from inheritance tax.

HM Revenue & Customs charities reference

Registered charities may have an HMRC charities reference number, requested on the inheritance tax forms IHT205 and IHT400. Unfortunately, this is not the same as the registered charity number.

You can search for HMRC charities reference numbers on the HMRC Charities Registered page.

More about qualifying charities

A charity may not be registered in England and Wales but still qualify for the relief. A qualifying charity is a charity established in the European Union which:

1. would qualify as a charity under the law of England and Wales (in other words, it could be registered here, even if it isn’t); and
2. is regulated as a charity in its own country; and
3. has managers who are fit and proper persons.