Chancellor George Osborne has dropped plans to impose a limit on tax relief for charitable giving, according to the BBC.
In the March Budget, Osborne (pictured) announced plans to limit the amount that can be reclaimed in tax relief, including on charitable giving, to £50,000 or 25 per cent of an individual’s income, whichever is greater.
Charities have strongly protested against the plans, which were to apply from April 2013.
Osborne said: “I can confirm that we will proceed next year with a cap on income tax reliefs for wealthy people, but we will not be capping relief for giving money to charity.
“It is clear from our conversations with charities that any kind cap could damage donations, and as I said at the Budget that is not what we want at all. So we have listened.”
This is the Government’s third Budget U-turn this week, after it backed down over plans to introduce pasty and caravan taxes.