25Apr2024
COVID-19 KORT Policy Update ● Zakat Donations Appeal Now Live!
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Leicester Business Centre, 111 Ross Walk, Leicester, LE4 5HH, UK

info@kort.org.uk

0300 123 7774
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May 13, 2022

Sponsor a Child

You can change a child's life for good when you become a sponsor with KORT.

KORT thinks that all children ought to have an equivalent chance to prosper. Your sponsorship will make a big distinction to a lady or kid in need– guaranteeing they have enough to eat, an education and HOPE for the future.

According to a UNICEF report, "Pakistan is home to 4.2 million orphaned children.

As their sponsor, you’ll have a special relationship with your sponsored kid. You’ll get images, handwritten messages, and routine updates from them.

You can sponsor a young person today and support an entire region. Your donations will assist more kids to get an education, equipping them with the understanding and abilities to raise their voices, stay in school longer and stop hazardous practices like kid marital relationship. Your donation will support districts with water and healthcare along with security in an emergency.

“I and the one who looks after an orphan and provides for him, will be in Paradise like these two” – and he gestured with his forefinger and middle finger, holding them close together. (Bukhari)

Not only do these children have to bear their parents’ losses, however, need to tackle severe hardship, this makes acquiring an education, having healthier meals, and having a comfortable youth impossible. This hardship restricts their access to education, correct shelter, clothing, and food and in many cases forces them to end up being homeless, where they are extremely susceptible.

Why Sponsor With KORT?

To qualify for our child sponsorship programme, an orphaned kid needs to remain in school, which safeguards their right to a future and an education and helps to give them the tools to support themselves once they end up being young adults in the world.

Protective, And Answerability

Our primary top priority in all our sponsorship program is protecting the rights, self-respect, and safety of the kids we help. Our vigorous personnel background checks and protocols, as well as our child defence officers and policies make sure that all children, we work with are safeguarded from damage.

What Will Your Sponsorship Supply?

£38 per month / £456 per year assists to cover an orphan child’s:

Nutrition
Housing
Clothing
Health Care
and educational materials as well as the BEST EDUCATION

Significantly, it also ensures they remain in school and aren’t required to work to support themselves. And it’s Zakat-applicable too!

Our orphan sponsorship program provides defenceless children an escape of the exploitation, overlook and abuse they face. It provides an opportunity to escape their poor living conditions by equipping them with proper shelter, education, and support so they can go on to build a life that is full of happiness and opportunities.

Donate Today
Muslim Charity
By admin
Blog
April 3, 2022

KORT ORPHANS ZAKAT APPEAL

KORT ORPHANS ZAKAT APPEAL

السلام عليكم ورحمة الله وبركاته

We pray you are well Insha’Allah.

WE NEED YOUR HELP

Hundreds of orphaned children are sustained through your Zakat each year. Your Zakat ensures that the orphaned children in the care of KORT are provided with all the necessities for a brighter future.

Donate 1 Orphan Pack for £100. (Includes uniforms, Stationery, and books for 1 year per orphan)
https://www.justgiving.com/campaign/zakatramzan22

You can donate your Zakat towards this appeal

You can also donate Fitrana at £5 per person and Fidya at £5 per missed fast (£150 for full Ramadhan).

We accept:
Sadaqah | Zakat | Lillah | Fitrana | Fidya | & Interest

100% donation policy

OTHER WAYS TO DONATE

Website: www.kort.org.uk

KORT UK Office: 0300 123 7774 (Mon-Fri 9-5)

Bacs: Bank: Barclays
Account Name: Kashmir Orphan Relief Trust
Sort Code: 20-49-17
Account Number: 13444112
For ref use: Orphans, (followed by your) door number (and your) postcode

May Allah accept all your efforts and reward you abundantly.

جزاك اللهُ خيراً‎

KORT Management Team UK

ramadan 2022
Donate Fidya
Fitrana
Eid Gift
By admin
Blog
April 3, 2022

Feed a Family of 5 this Ramadhan

*WE WILL BE PROVIDING FOOD PACKS TO THOUSANDS OF NEEDY FAMILIES IN AZAD KASHMIR & PAKISTAN THIS RAMADHAN*

Azad Kashmir and surrounding areas are desperately in need of your help this Ramadhan. As a region which is often susceptible to natural disasters and scarcity of fundamental resources, relief work is required almost all year round. This includes the like of Earthquakes and Cloud bursts as well as extreme poverty to such lengths that the parents are busy struggling with their daily bread before they can even consider sending their kids to school.

Covid restrictions around many parts of the world is being lifted or lightened and people are generally returning to work, however things aren’t quite going back to normal as we had expected. Many are still without jobs or had suffered too much.

When KORT was originally established in 2005, it was known as the charity with the orphanage that houses hundreds of orphan children with access to free healthcare, education and food. Alhamdulillah, we’ve grown so much since then and have been actively participating in relief work, to which we have come to learn the different areas of Kashmir where help is needed the most and what areas they require help in.

It’s the year 2022 and KORT has been working very hard on the ground to help those who are victims of casualty; whether it be by donating money or food to the poor, rebuilding homes destroyed by calamities or by empowering the widows and less abled of Kashmir. With the approaching of the blessed month of Ramadhan, KORT will be providing Food Packs to the poor and needy this Ramadhan to ensure all have the right to enjoy the blessed month of Ramadhan.

“Whoever feeds the one who is breaking his fast, shall have his reward (of fasting) without any decrease from the reward of the one fasting.” [Tirmidhi]

With the month of Ramadhan arriving soon, let us make an intention to do all we can to assist those less fortunate than us by giving in charity, offering help with volunteer work and stack up as much good deeds as possible.

Our Food Packs will be distributed all over Azad Kashmir including surrounding areas and will contain items such as Assorted Lentils, Sugar, Salt, Ghee, Dates, Pasta, Rice and more. The cost of each Food Pack is £40 and with every pack you donate, you will be feeding a whole family for the entire month.

The Messenger of Allah, peace and blessings be upon him, said, “The best amongst you are those who feed others.” [Musnad Ahmad]

Please remember that for our Food Pack appeal, we will be accepting Zakat too so donate generously to this noble cause.

By admin
BlogNews
April 1, 2022

KORT: Pride Of Mirpur

Established in 2005, KORT was developed to serve as a home and supply care for orphaned kids in any crisis or need across Pakistan and Azad Kashmir. What started as an orphanage in Azad Kashmir for deprived orphans and has actually now turned into a family of about 1200 children over the years. Our orphan care services provide education, home, food, medical care, and psychological healing to these children.

KORT- the heaven for less lucky angels of Pakistan and Azad Kashmir is not just a labour of love; it is a profound tale of how our Chairman Ch. Muhammed Akhtar and friends found heaven on earth.

Sponsor a Child in Pakistan

Sponsor a child for just £1.10 a day and help build a brighter future for children in Azad Kashmir and Pakistan!

At KORT, our charity believe that every child should have a happy, healthy childhood and the opportunity to construct a brighter future. Sponsor a kid in Azad Kashmir and Pakistan and help make that vision a truth.

Your sponsorship supports us to offer nutritious meals, clothes, health care, an education and a devoted guardian for an orphan or vulnerable child in Azad Kashmir and Pakistan — all in a loving and caring home.

When you sponsor a kid in Pakistan and Azad Kashmir, you’ll receive a welcome pack so you can learn more about your sponsored kid a little better. Every year we’ll send you two feedback reports so you can see precisely how your support is changing a child’s life for the better.

It’s a magnificent offering to care for a child, so please sponsor an orphan in Pakistan or Azad Kashmir today!

Things to Think About

Numerous go hungry, residing in dangerous conditions without any one to safeguard them. Without a mum or dad to look after them, these kids have become vulnerable to abuse, disregard and open to many kinds of exploitation. Numerous orphans are regrettably exposed to severe violence, in addition to mental and psychological distress after losing their one or both of their parents.

Orphan In Need

In the heart of every child is a hunger for home. Not just for food and a place to sleep, but for safety and community. Most significantly: for love. At KORT, Located In the heart of Mirpur, Azad Kashmir, we are a lot more than a home for children from desperate and tough scenarios.

We are a household, where love guides all of us as we grow and expand year after year. Not simply a regular kid’s house, we are an almost self-sustaining organization; a working farm, a vibrant school, getting no government assistance of any kind. If you have any concerns just get in contact with us by email or call our office!

Kashmir Orphan Relief Trust

Our guarantee to the world is summed up in 5 promises:

 

  • To constantly remember that every kid’s life is valuable and to put the requirements of the kids above our own.
  • To promote the greatest ethical requirements in our work and to be sincere and liable in our reports about those we help.
  • To acknowledge that none of our work is possible without the assistance of our volunteers and donors.
  • To operate in collaboration with other organizations, appreciating the Pakistani culture and religious beliefs and empowering local citizens to make a real difference in the neighbourhood.
  • To reveal the world that every child, despite their requirements, is worthy of to have a loving youth and to be treated with self-respect and care.

You can contribute here through card, Paypal and a variety of other alternatives. You can likewise establish month-to-month contribution choices if you would like. Please click the link to donate.

By admin
Blog
February 26, 2022

Zakat is an Obligation

Zakat is one of the pillars of Islam which literally means purification. Zakat is an obligation for all Muslims who meet the necessary criteria to donate a certain amount of possession every year. Zakat is a form of obligatory charity (read more about Zakat) with the prime purpose to ease the sufferings of the needy people of society. Its benefits cover the moral, social, and the economic field. It washes away greed of wealthy and makes them responsible for solving the problems of poverty. Zakat purifies wealth from the evil tendency to gather more and more money in fewer and fewer hands.  It takes away the surplus wealth and gives to the poor to meet the necessities of life. Zakat is the handiest tool for social justice.

There are a lot of verses in the Quran where Zakat and Prayer are mentioned together. The purpose is to remind the Muslims that Zakat is as important as Prayer. In Quran, Allah orders the believers to establish prayer and give zakat.

“And establish prayer and give Zakat, and whatever good you put forward for yourselves – you will find it with Allah” (2:110, Quran)

Zakat is a spiritual connection to the creator. It purifies one’s wealth to the will of Allah. This is the acknowledgment that He is the owner of everything we possess, and it is also for Him that we strive to help our brothers and sisters who are poor and need help. In Quran, Allah gives instructions to the Prophet Muhammad,

“Of their goods, take zakat, so that you might purify and sanctify them.” (9:103, Qur’an)

Islam has provided proper information on how much amount is to be given in Zakat. According to Hanafi sect of Islam, which is the most followed sect of Islam defines that 2.5% of wealth should be paid as Zakat from the wealth which has been kept in possession for a lunar year. If anyone who has more wealth than the threshold set by Islam, Zakat is obligatory on him and if he does not do this, he will have to face the consequences on the day of judgment.

We are a non-profit organization working to help the orphans, poor and needy people of Azad Kashmir and Pakistan. We are helping orphans prosper through education. Donate your Zakat to us, so that we can help the orphans of Azad Kashmir to grow by getting equal opportunities in life.

KORT has been serving in Azad Kashmir since 2005. KORT has remained consistent in providing housing, good quality education, welfare, good health and good water and sanitation to the Orphans and the people affected by natural disasters through different relief projects. We have helped hundreds of orphans to have equal opportunity in life. KORT has also helped the people affected by natural disasters by instrumental assistance during the past 16 years.

It is our religious, social, and moral duty to help orphans and helpless people of our society. And KORT is exactly doing this. KORT bas been successful because of donations of people like you. So donate and help the orphans.

“Your loose change can change the life of an orphan.”

By admin
Blog
February 24, 2022

Azad Kashmir – Zakat

Azad Kashmir is a Pakistani administered territory. This area has been affected by natural disaster heavily in 2005, an earthquake hit this area. Then in 2015, flooding and other natural catastrophe, left this area behind than the other parts of world. This area has remained vulnerable to natural disasters because of its geographic location. Now, the COVID-19 pandemic has seriously struck this area. Due to lock down in major cities of Pakistan many people lost their job and facing difficulties to meet daily needs. We are working to provide them all household necessary items. Daily wagers are the most affected part of society. This pandemic has fallen over them badly.

We have started different charitable projects to help them in these bad times.

Delivering food items to vulnerable families

Circulating Zakat and Fitrana to these families

Moreover, KORT education complex is serving orphans and disabled children to get better opportunities in life. KORT education complex has the capacity to host 500 male and 500 female orphans from the age of one day to eighteen years of age. It also has capacity to provide food to 1000 children through the mess system. One hundred and fifty members are there in education complex to give proper care to these children. They love them like their own children. By this way, the earning of families of these 150 staff members are also connected to this education complex.

The orphans and disabled children in our complex get equal opportunity to study in schools and universities. We give them every kind of support they need to continue their education. Our Vans and buses provide pick and drop service to the orphans studying in schools and universities. We also have an ambulance which remains 24 hours within the complex to tackle with emergency situations. Fire alarms and fire extinguishers are also installed to avoid any kind of trouble.

We are able to do all this for the orphans and disabled children taking shelter in our complex because of your donations, otherwise we may not be to do this, said the founder of KORT. KORT (Kashmir Orphans Relief Trust) is non-profit organization working for Orphan and under privilege Children, by providing them safe and secure home, an excellent education in prominent Universities, Colleges/Schools, and all home like facilities under one roof.

Vulnerable families are still dependent on our help. We are contacting you to not forget their suffering. Give now to support them throughout lockdown.

The Prophet (saw) said,

‘The one who cares for an orphan and me will be together in Paradise like this’ – and he (saw) held his two fingers together to illustrate. (Bukhari)

Every Muslim in this world wants to be with the Prophet Muhammad peace be upon Him in Jannah. The Prophet Muhammad revealed an easy way to come close to Him. So do not be late and share your part in changing lives.

Pay Zakat with KORT, and we will change lives forever. You can rest easy in your faith, knowing that 100% of your Zakat contribution will go directly to helping those who require it most.

By admin
Blog
February 8, 2022

What is Sadaqah?

Sadaqah is derived from the word “Sidq” which means “Sincerity”. Sadaqah is a kind of charity and is a voluntary charitable act towards others. It shows generosity, love, affection and sympathy for others. Sadaqah is also a main source to please God. Deeds like Smiling and helping hands are also kinds of Sadaqah.

Anyone can give Sadaqah in form of money. Holy Prophet (P.B.U.H) and His companions were much interested in giving Sadaqah that they gave their part of wealth as a Sadaqah to poor and needy people. The Holy Prophet would give charity in the form of Sadaqah whole year round.

Ibn Abbas (may Allah be pleased with him) said:

“The Prophet (peace be upon him) was the most generous of people, and he was most generous during Ramadan”. [Hadith, Bukhari]

Sadaqah can make someone’s life easy and blessed. Allah Says in Quran;

Who is it that would loan Allah a goodly loan so He may multiply it for him many times over? And it is Allah who withholds and grants abundance, and to Him you will be returned” [Qur’an, 2: 245]

Prophet (P.B.U.H) said that;

“Sadaqah extinguishes sin as water extinguishes fire” (He also said that Allah offers relief on the Day of Judgement for those who give Sadaqah). “The believer’s shade on the Day of Resurrection will be their charity” [Hadith, Tirmidhi]

It is said in many Hadith that Holy prophet was “more generous than the blowing wind.” Quran and sunnah also emphasizes on giving Sadaqah to the poor, needy and orphans. Holy Prophet (P.B.U.H) said that “Treat your sick ones with charity”. Holy prophet also said that “Sadaqah soothes God’s anger and prevents an evil death”. Sadaqah eases hardships and calamities.

Holy Prophet said:

“Give the Sadaqah without delay as it withstands calamity.”

As Muslims belief that their life is full of hardships and he also knows that Allah test his believer’s faith. Sadaqah is investment of person in this mortal world and after the death on the day of Justice. On the day of judgment when everyone is in need of good deeds and is being sentenced by every sin.

“Sadaqah extinguishes sin like water extinguishes fire”

Sadaqah paves a way of Muslim towards Jannah. Baab As-Sadaqah is one of the 8 gates of Jannah. people who gave Sadaqah will enter through this gate.

“But those who feared their Lord will be driven to Paradise in Groups until when they reach it while its gates have been opened and its keeper say, “Peace be upon you, you have become pure so enter it to abide eternally therein.” [ Quran 39:73]

On the day of judgement where sun will little above the heads and one day lasts for about 50,000 years of this world Sadaqah will provide a shadow to those who gave Sadaqah.

Sadaqah purifies the Nafs. Sadaqah is main way of acceptance of dua. Sadaqah brings balance to the society and balanced community. Sadaqah is beneficial to the society and looking after the vulnerable to improve society.

The Prophet said: “Your smile for your brother is a charity. Your removal of stones, thorns or bones from the paths of people is a charity. Your guidance of a person who is lost is a charity” (Bukhari).
By admin
Blog
January 14, 2022

SERVING HUMANITY BEYOND BOUNDARIES

KASHMIR ORPHANS RELIEF TRUST (KORT) - SERVING HUMANITY BEYOND BOUNDARIES

Kashmir Orphan Relief Trust is an Azad Kashmir based world-renowned Orphan Relief Organization:

Kashmir Orphan Relief Trust is paving ways for the betterment of humanity, not only on the national level but internationally in different regions effectively.

Under the leadership of Chaudhry Muhammad Akhter (TI),

Kashmir Orphan Relief Trust has served humanity in Education, Disabilities, Women Empowerment, Rehabilitation, Poverty Alleviation, Food Supplies, Shelters, and Homes.

Humanity in Afghanistan

Due to the withdrawal of the International Peace Keeping forces in Afghanistan, the progressive graph of Afghanistan has been disturbed totally. Continuous war and scarcity of resources due to the freezing of the country’s foreign assets have left people at God’s mercy as they struggle to run their daily stoves.

Feeling the pain of humanity in Afghanistan, Kashmir Orphan Relief Trust dispatched 21 trucks carrying 202 tons of humanitarian aid containing rice, sugar, flour, cooking oil, pulses and medicines to Afghanistan on 3rd of November 2021 as part of its efforts to alleviate the humanitarian crisis in the war-torn country.

The consignment was handed over by the Chairman of Chaudhry Mohammed Akhtar (TI) to the IGP of Paktia; Molvi Umer Mukhlis through Kharlachi border with the collaboration of the Pak-Afghan Cooperation Forum (PACF).

afgan aid
Afghan counterparts gratefully accepted the aid and prayed for better relationships with each other in the future.
handover aid

In the second phase of support for Afghanistan, Kashmir Orphan Relief Trust dispatched winter clothing for 2400 families on the 10th of December 2021 to cope with harsh winter weather conditions.

Zakat In Pakistan

The Humanitarian aid to Afghanistan was possible because of the Chairman of KORT; Ch. Mohammed Akhtar (TI) who worked tirelessly to raise all the funding. The project was led by the Manager of Kashmir Orphan Relief Trust Pakistan; Mr Sajid Dilawar Khan who under very frenetic circumstances arranged all the logistics, procurement, and liaised between all the concerning authorities to ensure a smooth delivery of the project in a professional way.   

For the First Time in History

An Azad Kashmir based organization is leading the way towards poverty alleviation, educational advancement, and the provision of basic health care needs in war-torn Afghanistan. This great achievement is due to the support of the Pakistani and Kashmiri people, and the diaspora community from around the world.

Under the leadership of the Chairman Ch. Mohammad Akhtar (TI) since 2005, Kashmir Orphan Relief Trust is committed to:
  • Provide education, good nutrition, and consistent loving care and encouragement to help orphans in need and underprivileged children to perform better at school, be healthier, and become successful self-sustaining individuals.
  • Enable communities to mitigate the effect of natural disasters by providing relief, protection, and recovery solutions.
  • Focus on sustainable livelihoods for the needy.
  • Turning Disability into Ability by providing wheelchairs for disabled people in AJK and Pakistan who cannot afford them.
  • Women empowerment programs.
  • Rehabilitating people following natural disasters by rebuilding homes.
  • Building schools in neglected areas.
  • Provide clean and safe drinking water in deprived areas.

To be a part of our mission and help people who are vulnerable, lonely and in need you can donate here. 

Donate Zakat
Donate Sadaqah
By admin
Blog
January 7, 2022

Ramadan Donation in Kashmir

Azad Kashmir

Azad Kashmir is under the control of the Pakistani Government. Pakistan controlled Kashmir is roughly 40% of the total of Kashmir regarding its area.

For many years due to extreme damage caused by the very first earthquake in the mid-2000s, again in 2015, flooding and other natural catastrophes, the area has actually fallen deeper into hardship. A lack of advancement by the authorities is likewise causing the region to fall method
behind the rest of the world.

Individuals of Azad Kashmir are pleased and very friendly of the support they receive, especially from the UK. Our objective is to continue our jobs within the area.

In September 2019, Azad Kashmir and numerous parts of Pakistan were ravaged by an earthquake. Allhamdulillah, the numbers of casualties weren’t as high as in previous natural disasters. Nevertheless, in regard to damage to structures and infrastructure, this earthquake caused destruction throughout the area.

Orphan Sponsorship

Generous donors like yourself are presently sponsoring over 650 orphans in Pakistan-administered Kashmir (Azad Kashmir). Be a part of this Sadaqah Jariyah project!
Schools have been closed for years, and your Orphan sponsorship will supply education for an orphan.

Our partners in Kashmir will hand out your money straight to the guardians of the orphans, to guarantee your Sadaqah/Zakat reaches the orphan quickly and safely.

The Prophet (saw) said, ‘The one who cares for an orphan and myself will be together in Paradise like this’ – and he (saw) held his two fingers together to illustrate. (Bukhari)

Why Give in Kashmir?

Years of political instability and conflict have actually taken their toll on the communities of India-administered Kashmir. Given That July 30th 2019, a mass lockdown has left families vulnerable and not able to leave their homes.

Allhamdulillah, we have been on the ground in Neelum Valley and Punch considering that the start of the crisis. Our partners on the ground have more than 10 years’ experience supplying Help In Kashmir, and they had approval to disperse relief in the worst affected areas door-to-door
and, where possible, deliver bigger distributions in more remote and rural locations.

As food and medicine stocks diminished, your donations reached households with emergency food parcels and essential medicines like insulin, as well as helping us run other relief services in susceptible communities.

It has actually now been a year given that the curfew in Kashmir started. An approximated half a million people have actually lost their schools, livelihood and jobs are still closed, and there is no indication of the restrictions lifting.

Vulnerable families are still dependent on our help. We are contacting you to not forget their suffering. Give now to support them throughout lockdown.

Donate Your Zakat & Sadaqah For Kashmir

KORT has actually been working in Kashmir since 2016. As part of Kashmir Emergency situation appeal, we help poor and needy households with food, water, medical and shelter help.

Our charitable projects in Kashmir include:

  • Distribution Of Food Packs
  • Circulation Of Zakat, Fitrana & Qurbani Meat
  • The Building Of Water Filtration Plants
  • Restoration Of Mosques & Wudu Locations
  • Establishing Medical Camps For Poor & Needy
  • Free Medical Treatment
  • Sponsorship Of Orphans
  • Structure & Restoration Of Schools

Pay Zakat with KORT, and we will change lives forever. You can rest easy in your faith, knowing that 100% of your Zakat contribution will go directly to helping those who require it most.

By admin
Blog
January 4, 2022

Legacy Giving

Lots of individuals stress over Inheritance Tax however the bright side is that leaving a gift to charity in your Will can help reduce, or even eliminate, the tax burden on your estate.

Your legal adviser will be able to explain how the Estate tax guidelines apply to you and your specific situations. As a charity we’re unable to help with legal or tax suggestions.

UK-registered charities such as KORT are exempt from Inheritance Tax so a gift to charity in your Will does not count towards the nil rate band, lowering the taxable valuable of your estate.

Example

Mr Hussain’s estate is valued at ₤400,000 when he passes away. In his Will, Mr Hussain consisted of charitable legacies adding up to ₤75,000. This quantity is subtracted from the taxable value of his estate, indicating there is no IHT to pay.

Legacy Giving

Legacy giving is an essential supplier of financial backing to KASHMIR ORPHAN RELIEF TRUST, whatever the size, all are valued and commemorated. Without these remarkable offerings both present and previous, the Home for Orphans we passionately know today would not exist.

Your Legacy giving will advance and ennoble the lives of Orphan Children, allowing their dreams to be understood, you will assist support unforeseen chances and help us remain at the forefront of ground-breaking humanitarian work.

We appreciate the significance of making your will and that it is a personal choice. After looking after your household and family members, you might feel the time is right to think about a gift to KORT. Whatever your inspiration, interest, or passion, we want to deal with you to ensure your gift is utilized exactly as meant.

Although we cannot provide legal suggestions, we can offer assistance and signpost you to the very best possible location to get advice prior to you consult a solicitor relating to making a will.

Providing A Legacy Gift Can Also Help In Reducing Inheritance Tax On Your Entire Estate.

Many people pick to make charitable donations in their wills. Not constantly thought about part of estate preparation, such gifts can decrease the inheritance tax (IHT) rate on death from 40% to 36% if utilized in the appropriate method.

Gifts to verified charities are themselves exempt from IHT regardless of the value of the gift. If a donation to charity in a will meets certain conditions, the lower rate of 36% IHT can apply to the taxable part of an individual’s estate.

The reduced rate of 36% applies where the person leaves a minimum of 10% of their net estate, called ‘the baseline quantity’, to charity. In easy terms, the standard amount is the whole estate in a person’s sole name (not including properties kept in trust, or joint possessions that go by survivorship) less debts, funeral expenditures and particular IHT exemptions– such as the nil rate band, presently ₤325,000.

Example:

Ali dies with assets worth ₤700,000 all in his sole name. He leaves ₤40,000 to charity in his will with the balance passing to his son, Irfan.

Ali’s financial obligations and funeral service expenditures are ₤15,000. He made no gifts during His lifetime for that reason his full nil rate band of ₤325,000 is available. The baseline quantity is calculated as follows:

Estate

Less debts and funeral expenses  

Less nil rate band     

Baseline amount

£700,000

£15,000

£325,000

£360,000

As the Gift of ₤40,000 to charity is more than 10% of the standard quantity, the lower IHT rate of 36% will apply to the taxable part of his estate. As the ₤40,000 is exempt to estate tax, this will be deducted from the standard total up to determine the value of the estate that undergoes IHT at 36% ie ₤360,000 – ₤40,000 = ₤320,000.

The total IHT liability will be ₤115,200 (ie ₤320,000 x 36%), leaving ₤529,800 for Irfan.

Had Ali decided to leave a smaller sized amount to charity, say ₤35,000 the IHT liability would be ₤130,000, leaving ₤ 520,000 for Irfan, i.e. both Irfan and the charity would receive less – to the advantage of HMRC.

Where the gift to charity falls short of the 10% of the standard amount, it might be possible for a deceased individual’s recipient to increase the present to charity so that the lower IHT rate of 36% applies to the remainder of the estate.

For more information on tax and succession planning, or charitable offering, please contact a professional.

By admin
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