Government unveils tax boost it claims could boost charity income by £1.5bn

He and prime minister Tony Blair want to use the tax system to promote ‘civic activity’.

Brown wants to use tax reliefs to encourage individual and corporate giving and hopes that the Exchequer forgoing £500 million in revenues will generate an extra income of at least £1.5 billion for charities and voluntary organisations.

The scale of the package is far greater than originally expected with fresh incentives for ‘payroll giving’ to encourage people to donate through their wage packets including the scrapping of the £250 minimum limit for gifts to attract tax relief.

There will also be incentives for people to make donations of shares to charities.

The chancellor is drawing up plans to announce a new multi-million pound ‘Childrens Fund’ run by charities, voluntary organisations and the government.Each will contribute to the new fund to help youngsters in need and at risk.He also proposes to announce a major expansion of the Surestart scheme to help poor families in deprived areas where voluntary organisations would have a key role in providing services.

Brown hopes that the moves will empower the ‘forces of compassion and care in our communities’.

Chancellor simplifies charity tax system

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