TaxPersonal TaxClosure of charity avoidance scheme applauded

Closure of charity avoidance scheme applauded

The charities Tax Reform Group has welcomed government moves to stop individuals avoiding income tax by abusing relief on the gifts of shares and securities to charity.

Link: Detox for the tax avoidance industry

Individuals would use a ‘complex arrangement of offshore trusts’ to manipulate the value of gilts donated to charities. The Inland Revenue claims the scheme is designed to cut the income tax liability of the individual while giving negligible benefit to the charity.

‘We welcome this measure which defends the tax breaks designed to encourage giving to charities. Any abuse of charitable reliefs by donors rebounds on the whole charity sector by tarnishing its reputation; we support all initiatives that protect the integrity of the sector,’ said Helen Donoghue, director of the Charities’ Tax Reform Group.

Changes were made effective to the finance bill today. ‘Genuine gifts of shares and securities to charity will continue to get tax relief, and we will continue to encourage genuine donors to give in this way,’ said John Healey, economic secretary to the Treasury.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

5m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter