Why the 2025 Budget Makes Charitable Giving More Important Than Ever
January 2026
This year, as families across the UK consider giving, it’s worth thinking not only of generosity but also of opportunity. With the 2025 Budget under the new Labour government, a number of fiscal changes have made the case for charitable donations — such as those to The Nasio Trust — stronger than ever.
WHAT HAS CHANGED IN THE 2025 BUDGET?
- Tax thresholds have been frozen until at least 2031, increasing “fiscal drag” and pushing many into higher tax brackets.
- Taxes on dividends, savings and property income have risen, impacting households who rely on investment returns.
- Stricter rules for charities on “tainted donations” and non-charitable expenditure come into force from 6 April 2026.
- Only donations to fully registered UK charities will continue to attract the usual tax benefits.
WHY CHARITABLE GIVING IS STILL HIGHLY TAX‑EFFICIENT
- Gifts to UK-registered charities remain completely exempt from Inheritance Tax (IHT).
- Leaving 10% or more of your estate to charity reduces the IHT rate from 40% to 36%.
- With frozen nil‑rate bands and rising asset values, more estates risk falling into the IHT net — making charitable giving a meaningful way to reduce the burden on loved ones.
IMPACT ON CHARITIES LIKE THE NASIO TRUST
- With tighter Treasury scrutiny and higher operating pressures, direct donations to registered charities are more vital than ever. Many schemes previously used to distribute funds to charitable causes may no longer qualify — making direct giving the safest, most impactful route.
A CALL TO ACTION
By supporting The Nasio Trust now, you can:
- Provide vulnerable children and families with food, care and dignity.
- Make use of tax‑efficient giving opportunities.
- Have a greater impact at a time when charities face unprecedented financial pressure.
This article was written by Jonathan Hunt, Chartered Financial Planner at Expert Wealth Management. Expert Wealth Management are an award‑winning Chartered Financial Planning practice based in Oxfordshire, helping families and individuals build financial clarity, confidence and long‑term security. For more information, visit www.expertwealthmanagement.co.uk.
This story is listed in: About Nasio, Fund-raiser stories, Press
