After recent reports from earlier this month found that less UK households contribute to charity than they did 30 years ago, Osborne has made changes to the inheritance tax rules to ensure people feel encouraged to leave percentages of their estates to charity.
Health and social welfare charities are now in line for a leg-up as from April 2012, individuals who leave 10 per cent or more of their estate to charities will receive a 10 per cent cut in their inheritance tax bill, a move which could mean an extra £300 million for charities.
Furthermore, charities will also be able to claim new Gift Aid on up to £5,000 of small donations each year and tax breaks will be given to those who donate works of art or historical artefacts to the nation.
“These represent the most radical and most generous reforms to charitable giving for more than 20 years. Do the right thing for a charity and the government will do the right thing by you. It’s a big help for the big society.” said Osborne.
Chief executive of the Association of Chief Executives of Voluntary Organisations (Acevo), Sir Stephen Bubb said:”This budget leaves a legacy of better giving for generations to come. But now we need government to get a grip on local cuts so that today’s generation of charities is still around to benefit tomorrow.”