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Mr. Evans left an estate valued at £1,000,000. His will specifies a charitable donation of £100,000. How does this affect the Inheritance Tax liability on his estate?

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Charitable donations made in a will are exempt from Inheritance Tax, reducing the taxable value of the estate. In this case, the taxable estate value is £900,000 (£1,000,000 - £100,000).


Key Point: Charitable donations reduce the taxable value of an estate and are exempt from Inheritance Tax, providing a tax-efficient way to support charities.

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