New Restrictions to Charitable Giving: What You Need to Know
Changes to UK tax law regarding charitable giving took effect from 6 April 2026. Following legislative amendments in the Finance Act 2025-26, the generous tax exemptions associated with charitable gifts - specifically Inheritance Tax (IHT) exemptions - will be restricted to gifts to UK-registered charities. Ejike Ndaiji, Partner in our Wills, Trusts, & Probate and Charities Team explains...
.jpg)
Changes to UK tax law regarding charitable giving took effect from 6 April 2026. Following legislative amendments in the Finance Act 2025-26, the generous tax exemptions associated with charitable gifts - specifically Inheritance Tax (IHT) exemptions - will be restricted to gifts to UK-registered charities.
This means gifts made to non-UK charities or to unregistered charitable trusts will generally no longer qualify for 100% IHT exemption on death, even if they have exclusively charitable purposes under the law.
The New Legal Landscape
For deaths occurring on or after 6 April 2026, the IHT exemption under Section 23 of the Inheritance Tax Act 1984 will be strictly limited to charities registered with the Charity Commission (or equivalent UK regulatory bodies).
This impacts Will-makers who have included gifts in Wills on trust for general "charitable purposes" at the discretion of Trustees. Previously, such arrangements were often used to provide flexibility, allowing Trustees to select beneficiaries at a later date. Under the new rules, this approach poses a high risk of compromising IHT relief.
For lifetime donations, these restrictions took effect from 26 November 2025.
What You Need To Do
To ensure that legacies remain tax-efficient, it is critical that proactive steps are taken:
1. Review Wills Immediately: If your Will leaves a legacy to a Trust for "charitable purposes" or to a discretionary trust that might benefit non-UK charities, it should be reviewed.
2. Letters of Wishes: Letters of wishes for Wills should be reviewed as gifts may fail to qualify for IHT exemption if they are not specifically directed to UK-registered charities or if the selection by the Trustees is not finalised within two years of death.
3. Name Specific Charities: Amend Wills to name specific UK-registered charities to ensure the 100% IHT exemption applies.
4. Appoint Trusted Executors: Ensure Executors/Trustees are aware of the need to distribute funds to qualifying UK charities within two years of death to secure the exemption.
5. Register Existing Trusts: If a Will creates a charitable trust, ensure that the trust is registered as a UK charity as expediently as may be possible.
Further Information
As these changes represent a "hidden" IHT trap, reviewing estate planning documents now is essential. For further information on Wills and charitable gifting, please contact the Wills, Trusts & Probate and Charities and Social Enterprise teams of Leathes Prior Solicitors on 01603 610911.
Leathes Prior advises Complete Strategy on sale to Flint Global
Alex Saunders, Partner in Leathes Prior's Corporate Team, advised Complete Strategy on the sale of its business to Flint Global. The acquisition marks Flint Global's first acquisition and represents the first step in its M&A growth strategy.
.jpg)
Maternity Services in England: Recent Reports and What They Mean for Families
In a follow up to our recent article on maternity safety, Polly Langford, Partner in our Personal Injury & Clinical Negligence Team has written on the findings of the Ockenden Report and what this means for families.
Competing uses of farmland - what the new Land Use Framework means for your business
The Government has published the Land Use Framework – which DEFRA says is “a plan for delivering new homes, nature restoration, clean energy and food security." Rebecca Allen, Senior Associate in our Agriculture Team explains what this means and what to consider for your business.
Leathes Prior advises Complete Strategy on sale to Flint Global
Alex Saunders, Partner in Leathes Prior's Corporate Team, advised Complete Strategy on the sale of its business to Flint Global. The acquisition marks Flint Global's first acquisition and represents the first step in its M&A growth strategy.
Maternity Services in England: Recent Reports and What They Mean for Families
In a follow up to our recent article on maternity safety, Polly Langford, Partner in our Personal Injury & Clinical Negligence Team has written on the findings of the Ockenden Report and what this means for families.
Competing uses of farmland - what the new Land Use Framework means for your business
The Government has published the Land Use Framework – which DEFRA says is “a plan for delivering new homes, nature restoration, clean energy and food security." Rebecca Allen, Senior Associate in our Agriculture Team explains what this means and what to consider for your business.
Changes to qualifying period: Time to rethink probation periods?
From 1 January 2027, the qualifying period is reducing from two years to six months. But the reality is that the new law will apply to all employees who have already accumulated at least six months of continuous employment by this date. This means that now is the right time for employers to be reviewing their employment contracts and rethinking strategies on probationary periods.
Proposals for reform of cohabitation rights on the death of a cohabitating partner
Georgia Sartin, a Solicitor in our Property and Contentious Probate Team explores the government’s recent open consultation ‘a fairer end to relationships’ published on 5 June 2026, , in respect of the proposals for reform for cohabitants in the intestacy framework and 1975 Act claims.
%20cropped.jpg)
Who is accountable for maternity safety? The case for a maternity commissioner following the birth trauma inquiry.
The safety of maternity services in England has been under intense scrutiny in recent years, now, a national campaign has been launched for the appointment of a dedicated Maternity Commissioner.
What is the difference between a share sale and an asset sale?
When running a business, company founders and shareholders will inevitably, at one stage or another, want to consider potential succession options, the most prominent being an exit by way of trade sale. Hugo Persad, Trainee Solicitor in our Corporate Team provides an overview of what the difference is between a share sale and an asset sale.
UK GDPR Update: What the Data (Use and Access) Act 2025 Means for Organisations
While several updates under the Data (Use and Access) Act 2025 came into force on 5 February 2026, the next key development for organisations is still to come. From 19 June 2026, organisations will be legally required to implement a formal complaint handling process for data protection matters. This is a significant shift, placing greater emphasis on resolving issues internally before they escalate to the regulator.
.jpg)
Selling a Probate Property: A Guide for Executors
Acting as an Executor can feel daunting, especially if there is a property which needs to be sold as part of the estate administration process. If you have been appointed as an Executor and you are unsure where to begin, here are some key things to consider.
%20website.jpg)
Leathes Prior's Personal Injury & Clinical Negligence Team Secure Settlement for Client
Kate Smith (Senior Associate) and Kimberley Nelson (Paralegal) were instructed in relation to a workplace personal injury claim, and successfully secured a five-figure settled for the client.
Employment Rights Act 2026: The New Trade Union Right Of Access - Will it matter?
The Government has now published its response to the “Make Work Pay: Trade Union Right of Access” consultation which means we are now one step closer to properly understanding what these new access rights really will be.
%20cropped.jpg)
-3.jpg)
