John le Carré’s legacy and the benefits of tax-efficient planning

The Times recently reported that John le Carré’s children have offset their Inheritance Tax bill by donating their late father’s literary archive, valued at £1.5 million, to the University of Oxford’s Bodleian Library. At Attwaters, we believe this is a prime example of the advantages of effective tax planning; not only has Le Carré’s family benefitted from his foresight, but so has the wider public, who now have access to the novelist’s work.

The Acceptance in Lieu scheme

Le Carré, who studied at Oxford, reportedly advised the Bodleian Library in 2006 that he wanted his archive to be stored there, provided that appropriate tax arrangements could be made for his family. Such arrangements were ultimately made through Arts Council England’s Acceptance in Lieu scheme, which allows taxpayers to pay their Inheritance Tax bill by transferring important works of art or heritage objects into public ownership.

While not all families will have access to cultural assets such as Le Carré’s, this does emphasise the benefits of getting ahead when it comes to tax and estate planning. Le Carré died in 2020, 14 years after he first notified the Bodleian of his wishes. This goes to show that it is never too early to start consulting legal experts about safeguarding your family’s financial future.

Letter of wishes

In another example of the novelist’s strategic planning, Le Carré granted his children explicit permission to manage and exploit his literary legacy. He reportedly wrote a letter of wishes in which he envisaged a literary estate mechanism, plus allowed his children to use his back catalogue and “write into his world”.  As a result, Le Carré’s novelist son, Nick Harkaway, published Karla’s Choice in 2024 – a continuation novel about Le Carré’s much-loved character, George Smiley. Without Le Carré’s expressed permission to do this, Harkaway would have risked breaching Intellectual Property laws.

Lessons for estate and tax planning

Le Carré’s foresight demonstrates how thoughtful planning can leave a profound impact, both on loved ones and society as a whole. Not only did Le Carré save his children from paying a significant IHT bill but, thanks to his letter of wishes, he created an opportunity for them to sustain his legacy and grow their wealth.

At Attwaters, our legal specialists are on hand to guide you through every step of the lifetime planning process, ensuring that your assets are protected and your wishes are honoured. We understand that tax laws are complex, but getting your affairs in order now can minimise the amount of tax eventually payable, thus maximising what your beneficiaries ultimately receive. To find out how we can help, get in touch with us on enquiries@attwaters.co.uk or  0330 221 8855 

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