The government should introduce lifetime legacies and do more to promote legacy giving, according to Cancer Research UK.
The comments were contained in the charity’s submission to HM Treasury’s consultation on proposals for a 10 per cent reduction in inheritance tax for people who leave at least 10 per cent of their estates to charity. The consultation closes tomorrow.
The initiative was announced in the Budget in March and is due to be introduced in April 2012.
The proposed relief would reduce inheritance tax to 36 per cent from 40 per cent for those leaving 10 per cent or more of their estates to charity.
In June this year, the Society of Trust and Estate Practitioners said that if a planned tax relief on legacies was adopted, nearly all estates advisers would be likely to suggest that their clients think about leaving legacies.
Sarah Woolnough, director of policy at CRUK, said it welcomed the Treasury’s proposals.
"However, we believe that the projections for how much this policy will generate for the sector might be ambitious and we will monitor it closely," she said.
"Only the wealthiest 3 per cent of estates are eligible for inheritance tax, so we also ask the government to be innovative in promoting legacy giving to charities more generally and to introduce lifetime legacies, which could be extremely beneficial for the sector."