F1SCHEDULE 1AGifts to charities etc: tax charged at lower rate
The relief
2
1
If the charitable giving condition is met—
a
the tax charged on the part of TP that qualifies for the lower rate of tax is to be charged at the lower rate of tax, and
b
the tax charged on any remaining part of TP is to be charged at the rate at which it would (but for this Schedule) have been charged on the whole of TP in accordance with section 7.
2
For the purposes of this paragraph, the charitable giving condition is met if, for one or more components of the estate (taking each component separately), the donated amount is at least 10% of the baseline amount.
3
Paragraph 3 defines the components of the estate.
4
Paragraphs 4 and 5 explain how to calculate the donated amount and the baseline amount for each component.
5
The part of TP that “qualifies for the lower rate of tax” is the part attributable to all the property in each of the components for which the donated amount is at least 10% of the baseline amount.
6
The lower rate of tax is 36%.
Sch. 1A inserted (with effect in accordance with Sch. 33 para. 10(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 33 para. 1