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Hannah Terrey from Charities Aid Foundation has called on the Chancellor George Osborne to exempt charitable donations from a proposed cap on unlimited tax relief.
More than a hundred charities have signed up to the 'Give it Back, George' campaign which is urging the Government to re-think the proposals.
Treasury Minister David Gauke has defended the government's controversial new plans to impose a cap on tax relief benefits that can be obtained through charitable giving.
The proposed cap would be set at £50,000 in any one year, or at 25% of an individual's income; whichever is greater.
Several charities and some "leading philanthropists" have hit out at the proposals over fears it will "undermine the motivation to give generously and deprive charities of much needed funds."
Treasury Minister David Gauke has defended the government's proposed plans for a cap on tax relief for charitable giving.
He said the overall cap on tax reliefs planned as part of the 'crackdown' on super-wealthy tax dodgers would bring in £300 million, of which between £50 million and £100 million would come from the charities cap. He told the BBC Radio 4 Today programme:
He said the Government would be working with charities to find ways to protect those that are particularly affected by large donations.
Almost one in 10 people earning more than £10 million a year is paying less than the 20% basic rate of income tax, according to new figures released by the Treasury.
- 6% of £10 million-plus earners paid less than 10% tax
- 3% of £10 million-plus earners paid less than 20% in tax
- Less than 75% of £10 million-plus earners paid more than 40%
The Government said the figures showed the new for urgent action to prevent the super-rich exploiting the system to reduce their tax bill. A spokesman said:
In a statement the Treasury said: "There are currently millionaires paying a lower tax rate than ordinary taxpayers. This is the system we have at the moment, but the Government is committed to making it fairer. That is why we are capping tax reliefs for the wealthy.
The Budget makes clear that we want to ensure genuine charities that rely on large donations are not hit significantly, which is why we said we'd spend the next year working with the charity sector and philanthropists on the details."
The Treasury says almost one in 10 people earning more than £10 million a year are paying less than the 20% basic rate of income tax. It comes as the government defends itself over plans for a tax crackdown.
- 6% of people earning £10 million or more paid less than 10%
- 3% came in below the basic 20% rate
- Fewer than three quarters paid more than 40%
A new poll reveals that almost two thirds of Conservative and Liberal Democrat backbenchers are opposed to the cap on tax relief for charitable donations. The survey, commissioned by the Charities Aid Foundation, questioned 71 MPs over Easter. It comes amid claims the move will harm good causes.
- 46 agreed charity donations should not be subject to the new limit
- 15 supported the policy
- 10 did not express an opinion
93% agreed the Government "should do all it can to use the tax system to encourage charitable donations from wealthy donors."
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The government appears to have tied itself in knots over the row on charitable giving.
The row over the cap on a tax relief for charitable giving is the latest in a string of rows that have erupted since the budget.