THE GOVERNMENT has come under renewed pressure to make concessions over its proposed cap on tax reliefs on charitable donations after a poll of Lib Dem and Tory backbenchers showed almost two-thirds are opposed to the measure.
The survey, conducted for the Charities Aid Foundation showed that of the 71 MPs questioned, 46 of them agreed that charitable giving should not be subject to the cap, with 15 supporting the move and ten declining to express a view.
Ninety-three percent agreed the government “should do all it can to use the tax system to encourage charitable donations from wealthy donors.”
The chief executive of the Charities Aid Foundation, John Low, said: “The government now needs to listen and act on to this clear message from coalition backbenchers, as well as from ministers, charities and donors and reverse this ill-thought through tax change.”
It appears that the government has listened. Chancellor George Osborne is reported to be willing to row back on the the controversial plans, but will resist performing a complete U-turn.
People close to the chancellor have told the Financial Times Osborne is considering two proposals to try and limit the damage.
One plan is to have a seperate limit on charitable donations of 50% of a person’s income. Another is to allow donors roll over unused tax reliefs into future years if they are used for charitable giving.
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The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
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