Philanthropy tax: Charities enraged as Chancellor targets big donations
Rich philanthropists will be deterred from making large donations to charities following a change to tax relief rules, the Government was warned last night.
Charity leaders protested that the move ran counter to David Cameron's much-repeated commitment to a "Big Society" and called for a meeting with George Osborne to discuss the surprise move. As austerity measures bite, charities are increasingly turning to wealthy supporters to help fund projects that might previously have received taxpayers' money.
Notable recent gifts include a £10m donation by the author, JK Rowling, to set up a research clinic into multiple sclerosis in Edinburgh. Under Mr Osborne's plan, the Treasury will set a limit on the tax relief paid on large donations.
It will have the effect of cutting the amount philanthropists can claim back if they donate more than £200,000. The Treasury said it wanted to stop top-rate taxpayers claiming tax relief "excessively". But the Charities Aid Foundation warned the change could cost charities millions at a time when their income was already falling.
John Low, its chief executive, said: "Government can't have a philanthropy agenda and then introduce measures like this. These changes represent a huge cut in tax relief on major donations to charity by wealthy philanthropists whose generosity is supporting some of the most vulnerable people in society.
"Tax relief on major donations is not tax avoidance. Now, more than ever, we should be making it easy for people to donate."
Threat of 'catastrophic cascade of collisions' must be averted, warn scientists
Oxford is the least affordable city in the UK, where houses cost 11 times local salaries
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Space debris orbiting Earth to be destroyed with giant lasers fired from Australia
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Australian man Rod Sommerville reacts to bite from deadly snake by reaching for cold beer
- 2 Pakistan vs Paul Smith: Sandal-wearers bemused by famed British designer's attempts to sell traditional Peshawari chappal-style shoes for the distinctly untraditional sum of £300
- 3 North Korea elections: Kim Jong-un wins 100% of the vote
- 4 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 5 Sharknado 2: Former WWE wrestler Kurt Angle to fight second wave of flying sharks
£30000 - £35000 per annum + Very Competitive Salary: Austen Lloyd: Residential...
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...
Negotiable: Randstad Education Preston: Randstad Education is urgently recruit...