No cap on reliefs for charitable giving
Following representation from interested parties the government has announced that it no longer intends to proceed with the proposed capping of some tax reliefs including charitable giving.
Plans to cap tax relief on charitable donations have been scrapped by Chancellor George Osborne in a reversal of one of the measures announced in the Budget.
The cap, which was designed to limit relief at £50,000 or 25% of income, was proposed in the Budget but resulted in protests from charities who were concerned that they could lose a significant proportion of their income.
The government has confirmed that it will be pressing ahead with the cap on income tax reliefs for wealthy people which do not relate to charitable donations.
Since the Budget announcement, the Treasury has been holding discussions with charities and major donors to discuss the scale of impact which they believed the cap could have on charitable giving.
John Low, Chief Executive of the Charities Aid Foundation, said:
'We are delighted that the Government has responded to the challenging calls from philanthropists and charities across the country and taken the bold decision to exempt charitable donations from the cap on tax relief.'
'We realise the Government is responding to truly exceptional financial circumstances and is having to make tough decisions about public finances. We acknowledge and welcome the Chancellor's decision to do the right thing and exempt charity donations from the cap. We thank Ministers for the support they have shown to charities large and small, which are so vital to the health of our country.'
Internet links: BBC news CAF press release
Have You Registered? If yes then
to logon and access our full website. If not then
to find out why you should register.
PAYE penalties - don't get caught out. Click here
to find out more.
Information Factsheets. Click here
to access over 60 clear and concise factsheets.
If you require assistance with your
payroll please contact us
today to arrange a free no obligation initial consultation. If you then decide that you want us to manage your accountancy and tax affairs for you then we will do all the necessary work including obtaining professional clearance and contacting HM Revenue & Customs.