Closure 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.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource