RELIEF FOR POLITICAL GIFTS
The General Election result means that donations to the UK Independence Party now qualify for relief from inheritance tax as that party returned at least one member and secured at least 150,000 votes nationally. However, the Alliance Party in Northern Ireland now ceases to qualify.
Remember that this relief applies to gifts during the donor’s lifetime as well as bequests made to a qualifying party in their Will.
These donations need to be made personally, as such payments are not an allowable deduction in arriving at business profits.