Charities slam 'astonishing shambles' of tax cap

Responding to comments made by Treasury minister David Gauke, John Low, Chief Executive of Charities Aid Foundation said:

This has been a shambles. The Government simply has not thought this through. It is astonishing that the Treasury did not properly assess the impact on charities of their new tax relief cap before announcing this damaging measure in the Budget.

Capping tax relief on charitable donations will raise relatively small amounts of tax but risks inflicting far greater damage on causes for the public good such as medical research and treatment, education and help for some of the most vulnerable people in society.

– John Low, Chief Executive of the Charities Aid Foundation

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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.