A bequest on death to a local authority for the benefit of local groups and good causes does not appear to be explicitly exempt for IHT but do HMRC normally treat such gifts as exempt despite not being to a charity?
Have you looked at the gifts for national purposes?
Any gift, whether in a Will or during someone’s lifetime, no matter the amount, would be considered as Inheritance Tax exempt as long as the institution falls under HMRC’s permitted category of institutions.
Kim Jarvis
Vitality
Kim, many thanks for this. I had not not looked into S25 IHTA84 properly, being misled by the title - gifts for national purposes - thinking this would not apply to a gift to a parish council with a population of less than 5,000!
I was further misled by reading IHTM11134 and seeing the restricted nature of exemption for gifts to local authority maintained schools which is subject to the proviso “funds are given to the schools expressly for the charitable advancement of education by means of the provision of amenities, facilities etc.” but clearly there is the distinction between a local authority and a local authority maintained school.