Inheritance Tax Act 1984 Schedule 1A paragraph 4

The donated amount

Schedule 1A paragraph 4 defines the "donated amount" for a component of the estate, which is the portion of the value transferred on death that is attributable to charitable gifts within that component.

• The donated amount is calculated separately for each component of the estate (survivorship, settled property, and general).
• It comprises the total value transferred by the death that is attributable to property forming part of the relevant component and qualifying as a gift to charity or a registered club under section 23(1).
• The donated amount is a key figure because the 10% charitable giving condition is assessed by comparing it against the baseline amount for that component.
• Where the charitable giving condition is met, the component qualifies for the reduced inheritance tax rate of 36% instead of the standard 40%.