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Where Taxpayers and Advisers Meet

payments to none profit organisation

savedave
Posts:4
Joined:Tue Apr 10, 2018 11:26 am
payments to none profit organisation

Postby savedave » Mon Jul 22, 2024 12:24 pm

I make regular monthly payments to a Non-Profit & Charitable Organization based in the Netherlands is this regarded as a gift when calculating inheritance tax

pawncob
Posts:5154
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: payments to none profit organisation

Postby pawncob » Mon Jul 22, 2024 7:55 pm

Gifts to charities are exempt from Inheritance Tax (‘IHT’), whether they are made during a person’s lifetime or on death by their Will.

https://www.michelmores.com/tax-insight/inheritance-tax-relief-gifts-charities/
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts:1848
Joined:Fri May 16, 2014 3:47 pm

Re: payments to none profit organisation

Postby AGoodman » Mon Jul 29, 2024 11:19 am

The charitable exemption only applies to organisations which are charitable under UK law. It is very unlikely that a Dutch organisation would meet the criteria. If they did, they would probably appear on the Charity Commission register and advertise their UK reg charity number on their website.

AGoodman
Posts:1848
Joined:Fri May 16, 2014 3:47 pm

Re: payments to none profit organisation

Postby AGoodman » Mon Jul 29, 2024 11:20 am

So yes, it would be treated as any other gift - it is possible it may qualify for the exemption for regular gifts made out of excess income but that would require meeting all the criteria there.


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