GOOD examples
The value of your estate is not the same as the value of your “taxable estate”.
Your taxable estate is the amount on which you pay Inheritance Tax once all your allowances are taken into account. Typically, these will include personal allowances and allowances related to your home.
But everybody’s circumstances are different and it’s sensible to seek professional advice on how the GOOD GIVE would affect you personally. The tables below give you some typical examples of how the GOOD GIVE could affect you and your beneficiaries.
It will allow people to include their marital status, list the value of their property, savings, investments and any liabilities.
And it will then calculate the value of their taxable estate, and the Inheritance Tax payable if they opt for the GOOD GIVE. It will also indicate the effect this will have on the amount left to beneficiaries.
The information on this website is based on our current understanding of the law in England and Wales.
The examples below assume that people have their full Inheritance Tax free allowance of £325,000 and the residence nil rate band of £175,000 available for their home.
These examples have not taken into account the value of any pension assets, previous gifts made, or any trusts created, which may impact the figures illustrated. The government has said pensions will be subject to Inheritance Tax from 6th April 2027.
The examples are based on gross estate values. This means any property, savings and investments you may own less any debts.
Examples
| Married couple with an estate worth £1.5m | |||
|---|---|---|---|
| No gift to charity | 10% gift to charity | ||
| Amount to beneficiaries | £1,300,000.00 | Amount to beneficiaries | £1,288,000.00 |
| Amount to HMRC | £200,000.00 | Amount to charity | £50,000.00 |
| Amount to HMRC | £162,000.00 | ||
| Reduction to beneficiary | £12,000.00 | ||
| Your beneficiaries receive £12,000 less but your chosen charity receives £50,000. | |||
| Single person with an estate worth £1.5m | |||
|---|---|---|---|
| No gift to charity | 10% gift to charity | ||
| Amount to beneficiaries | £1,100,000.00 | Amount to beneficiaries | £1,076,000.00 |
| Amount to HMRC | £400,000.00 | Amount to charity | £100,000.00 |
| Amount to HMRC | £324,000.00 | ||
| Reduction to beneficiary | £24,000.00 | ||
| Your beneficiaries receive £24,000 less but your chosen charity receives £100,000. | |||
| Married couple with an estate worth £3m | |||
|---|---|---|---|
| No gift to charity | 10% gift to charity | ||
| Amount to beneficiaries | £2,060,000.00 | Amount to beneficiaries | £2,003,600.00 |
| Amount to HMRC | £940,000.00 | Amount to charity | £235,000.00 |
| Amount to HMRC | £761,400.00 | ||
| Reduction to beneficiary | £56,400.00 | ||
| Your beneficiaries receive £56,400 less but your chosen charity receives £235,000. | |||
| Single person with an estate worth £3m | |||
|---|---|---|---|
| No gift to charity | 10% gift to charity | ||
| Amount to beneficiaries | £1,930,000.00 | Amount to beneficiaries | £1,865,800.00 |
| Amount to HMRC | £1,070,000.00 | Amount to charity | £267,500.00 |
| Amount to HMRC | £866,700.00 | ||
| Reduction to beneficiary | £64,200.000 | ||
| Your beneficiaries receive £64,200 less but your chosen charity receives £267,500. | |||
| Married couple with an estate worth £5m | |||
|---|---|---|---|
| No gift to charity | 10% gift to charity | ||
| Amount to beneficiaries | £3,260,000.00 | Amount to beneficiaries | £3,155,600.00 |
| Amount to HMRC | £1,740,000.00 | Amount to charity | £435,000.00 |
| Amount to HMRC | £1,409,400.00 | ||
| Reduction to beneficiary | £104,400.00 | ||
| Your beneficiaries receive £104,400 less but your chosen charity receives £435,000. | |||
| Single person with an estate worth £5m | |||
|---|---|---|---|
| No gift to charity | 10% gift to charity | ||
| Amount to beneficiaries | £3,130,000.00 | Amount to beneficiaries | £3,017,800.00 |
| Amount to HMRC | £1,870,000.00 | Amount to charity | £467,500.00 |
| Amount to HMRC | £1,514,700.00 | ||
| Reduction to beneficiary | £112,200.00 | ||
| Your beneficiaries receive £112,200 less but your chosen charity receives £467,500. | |||
Important note
We strongly advise everyone to seek professional advice from a will writer/solicitor, accountant/tax adviser or financial adviser as some assets, such as a life insurance policy in trust or an AIM ISA, may fall outside of Inheritance Tax.
Advice from an appropriate professional will ensure the suitability of the GOOD GIVE given your personal circumstances and objectives. We also recommend you regularly review your will and other financial arrangements. The law may change, and you should ensure your arrangements continue to meet your needs. The GOOD GIVE is not authorised to provide legal, tax or financial advice.