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."
- 1 The Boy in the Dress, TV review: David Walliams' Boxing Day treat is a celebration of being different
- 2 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 3 Andy Murray takes to Twitter to show off his Christmas jumper
- 4 Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
- 5 Top 10 travel destinations for 2015: From Haiti and Alaska to Namibia and Iceland
PlayStation and Xbox hacked by Lizard Squad
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Travel chaos continues as Kings Cross train delays add to snow on roads
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
£40000 - £43000 per annum + benefits: Ashdown Group: Senior Marketing Executiv...
£40000 - £43000 per annum + benefits: Ashdown Group: An international organisa...
£25000 - £30000 per annum: Ashdown Group: Internal Recruiter -Rugby, Warwicksh...