Calculating Inheritance Tax – new changes to watch for

Reduced rates for Inheritance Tax now apply to those estates where the deceased died after 6 April 2012 and the deceased leaves at least 10% of their net estate to charity. The Inheritance Tax rate  is then reduced to 36% and not 40%. The legislation still requires Royal Assent later this year but HMRC will accept the lower rate of tax on a provisional basis subject to this approval.