All money given to charity is completely free of tax. If you give money to charity during your lifetime then it is out of your inheritance tax estate straightaway.
Every gift made to charity by your Will is deducted from your estate before the inheritance tax is calculated.
People who have no dependants and are able to leave their entire estates to charity naturally pay no IHT whatsoever.
Gifts to charity are particularly useful for those who would like to get rid of a very small IHT problem, or (at the other end of the scale) for those whose beneficiaries have lots of independent wealth of their own, and whose money might therefore be put to better use in the charitable sector.
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