Treasury drops Gift Aid tax break reform plans

The Treasury has backtracked on a possible move to amend laws governing tax relief on Gift Aid charity schemes.

The decision was announced at a high-level meeting last week between the tax policymakers and charity groups.

Charities wanted to see changes, including a possible move to replace tax relief for higher rate tax payers with an increase in the breaks directly available to the not- for-profit organisations.

"Rushing into major reforms of the Gift Aid risks damaging what is seen as a very successful system," The Treasury told the FT.