The professional body the Society of Trust and Estate Practitioners has given the Treasury a draft clause that those who want to take advantage of the planned inheritance tax breaks could use in their wills.
Step sent the clause to the Treasury for review last week as part of the government’s plan to reduce the 40 per cent inheritance tax rate to 36 per cent for people who leave at least 10 per cent of their estates to charity. The measure will be introduced in April.
A spokeswoman for Step, which has 6,000 members in the UK, said that if the government approved the clause it would be included in legislation as the approved clause for people to use in their wills.
"If it is approved then it will be something for charities to use and propose to people to put in their wills," she said.
The draft clause says: "I give (name of charity) such a sum as shall constitute a donated amount equal to 10 (or insert larger figure) per cent of the baseline amount in relation to my estate passing under this will as defined in each case in schedule 1A Inheritance Tax Act 1984 ignoring any election under paragraph 7 of the schedule. My executors may appropriate assets not otherwise specifically bequeathed to satisfy (or partly satisfy) this legacy without the consent of any beneficiary under my will or any codicil to my will."
A senior tax policy adviser at HM Revenue & Customs said at a Step event last year that a standard clause was likely to be needed for people who wanted to take advantage of the planned inheritance tax break.