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Consultation over 'charity tax'

Downing Street has said a "formal consultation" on a government plan to tax charitable donations will take place this summer. It was revealed almost one in 10 people earning over £10m a year is paying under the 20% rate of income tax.

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Cap on gift aid is a 'problem for all charities'

The 'Give it back, George' campaign has received support from more than a hundred charities working within the UK.

They are campaigning to get the Government to keep the unrestricted tax relief available to philanthropists who give money to charity.

Here is what the new rules will mean:

  • Currently unrestricted tax reliefs will now be subject to a cap
  • Anyone trying to claim more than £50,000 will be limited to 25% of their income or £50,000 (whichever is greater)
  • Gifts of £200,000 or more will be subject to the new rules

The problem for many of the charities is that almost half of their income comes from just 7% of donors.

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