Charity Tax Group
Church House
Great Smith Street
London
SW1P 3AZ
Great Smith Street
London
SW1P 3AZ
The Treasury is very keen to dispel the notion that the proposed tax relief cap is at all motivated by the cost to the Exchequer of tax reliefs on charitable giving and the need to tackle the national deficit.
Christian donor-advised charity Stewardship has come out against the compromise on the tax relief cap suggested by the British Red Cross and supported by the Institute of Fundraising.
Conservative MP Tim Yeo told an audience of charity finance specialists yesterday that he thought there was a “very good chance” that the proposed tax relief cap would be altered as the Finance Bill makes its way through Parliament.
The voluntary sector needs to be mindful of the “political reality” of the tax relief cap and come up with an alternative plan that is palatable to both the government and the sector, charity tax expert Richard Bray said last night.
The proposed cap on tax reliefs create a “huge disincentive” for anyone to give more than a quarter of their income to charity, and so is effectively a tax on giving, according to the vice-chair of Charity Tax Group.
News
Tax relief clarification note clarifies little, say sector policy heads 3
Tania Mason
4 Apr 2012
4 Apr 2012
The gift aid claimed by a charity on a supporter’s donation will be counted by HMRC as contributing to the donor’s own tax relief in assessing whether the donor has reached the new tax relief cap, the government has confirmed.
Christian charity Stewardship has calculated that donations to its cause totalling £11.7m in the last year would have been at risk under the government’s proposed cap on tax reliefs.
The leaders of six of the sector’s representative bodies fired off a joint letter to the Chancellor yesterday requesting a meeting to discuss the impact on charities of the cap on tax reliefs announced in Wednesday’s Budget.