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Osborne U-turns on tax relief cap for charitable giving

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.

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Patrick Schan 31st May 2012 at 2:47 pm

    This Government is making so many u-turns they are going in ever decreasing circles.

  2. When the treasury formats a tax strategy, it seems to have little regard for the bigger picture, and drafts its proposed leglislation in an often incomprehensable way. Therefore the pasty tax should have read that VAT should be charged if the supplier kept them warm, not some nonsense about ambient air temperature.
    This charitable cap was drafted by the treasury or HMRC as well, and was plainly silly.
    Maybe these draftsmen used to work for the FSA.

  3. so whats new? I see the Gov are still making it up as they go along, my advice take a two week break away from no 10/11 live in the real world work with those in real need, drive around the country and see what the people really need, then go back and set new policies to get the country woring again, now is the time to invest in people for everyones future

  4. Well done for listening then having the courage to U-turn, even in the certain knowledge that a wave of jeering criticism would follow. Makes a change from the blatant obstinacy of previous administrations that was more about avoiding egg of the face rather than making sensible policy adjustments.

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