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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Health Secretary Andrew Lansley defends the government's charitable giving plans

The Health Secretary Andrew Lansley has defended the government's plans to cap the amount of income tax relief on charitable giving.

He told ITV New's Libby Weiner that the Chancellor when he delivered his Budget "very fairly and rightly said" in these circumstances of dealing with the deficit people have to understand that the very richest in society are making a contribution through taxation.

He went on:

"If 10% of the richest people in this country earning income of over £10m a year are paying an effective tax rate below 20% that is not the case. So it is an issue which has to be addressed."

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