Supporting The Academy – Bequeath a Legacy
As an exempt charity, the Academy pays no tax on gifts of money or property bequeathed to it by a legacy. In addition, a bequest to the Academy may have tax benefits for your estate, by reducing the amount liable to Inheritance Tax (in 2011-12, this is the excess over £325,000). In March 2011, the then Chancellor of the Exchequer announced the introduction of a lower rate of inheritance tax for those leaving a gift in their will to a charity, with effect from April 2012. It is hoped that this new legislation which will apply to estates over the £325,000 threshold where 10% or more has been left to charity, will encourage more people to consider leaving a legacy.
If your estate is worth more than £500k and you choose to leave 10% of the taxable balance of your estate over the £325k threshold to a charity, the amount of tax payable on the remainder of your estate is reduced from 40% to 36%. Your beneficiaries receive £425,800, while the charity benefits by £17,500. An example is shown below:
|Gross estate||IHT threshold||Gross taxable||Legacy to charity min 10% of sum above IHT threshold||Net taxable||Tax rate||Tax||Net estate|
|Value of charitable gift £17,500||Cost of charitable gift £4,200|
Any legacy bequeathed to the Academy will be used for the direct benefit of the pupils of the School.
Permanent forms of recognition include naming of rooms and future building developments within the School.