Save the Arts: Reform the tax system, say stars

Two knights of the British theatre yesterday gave their support to the Independent and Independent On Sunday campaign to persuade the Chancellor to give tax incentives for individuals to contribute to the arts.

Musicals impresario Sir Cameron Mackintosh and award-winning actor Sir Ian Holm (pictured above) gave their backing to our campaign, which could end the financial crisis afflicting arts companies and venues across the country.

Both men want to see reforms to the tax system which will encourage individuals to support the arts. In America donations to the arts are tax deductible and there is a climate of giving not replicated in this country.

We are urging Mr Brown to use his budget to introduce a change in taxation law to enable people to make tax-free donations to arts companies and venues. The system is riddled with anomalies. Some arts organisations are charities, others are not. Tax relief can only be claimed where the organisation is a charity. In addition tax relief can only be claimed on donations above pounds 250.

The absurdity of the present system is further illustrated by the fact that if you benefit from your donation by, for example, getting reduced admission prices or even just being put on a priority mailing list, you may lose tax relief. There is also an anomaly for people who want to give paintings to galleries. Tax relief is only applicable after death.

- David Lister, Arts News Editor