The benefits to the College of a gift are clear. However, there are also tax advantages to you in remembering St Anne’s in your will.

If your estate is worth £275,000 or more (as of 5 April, 2006) inheritance tax at 40% must be paid out of it before the people to whom you make bequests can benefit – only charities and spouses are exempt from this.

So if, for example, you left 10% of your total estate worth £500,000 to St Anne’s in your will its value is deducted from your estate before inheritance tax is paid:

• Value of estate before tax: £500,000
• Inheritance tax exemption: £275,000
• Taxable value of estate: £225,000  
• Less value of gift: £50,000
• Taxable value of estate after gift: £175,000 
• Taxable value of estate if no gift made: £225,000
• Inheritance tax payable after gift: £70,000
• Inheritance tax payable if no gift made: £90,000 

In this example, then, a gift to the College of £50,000 results in a saving of £20,000 in inheritance tax. And if you make a bequest to St Anne’s of stocks and shares or valuables, no capital gains tax is payable either.