Osborne scraps cap on charity tax relief.
Chancellor George Osborne has scrapped plans to cap tax relief on charitable donations in another embarassing U-turn for the Government.
The cap - limiting relief at Au50,000 or 25 per cent of income - was proposed in Mr Osborne's March 21 Budget but sparked huge protest from charities, warning that it would cost them dearly.
The announcement follows climbdowns on the "pasty tax" and "caravan tax" earlier this week, although Mr Osborne said he would press ahead with the cap on income tax reliefs for wealthy people which do not relate to charitable donations.
Announcing his decision today, Mr Osborne said: "I can confirm that we will proceed next year with a cap on income tax reliefs for wealthy people, but we won't be capping relief for giving money to charity.
"It is clear from our conversations with charities that any kind of cap could damage donations and, as I said at the Budget, that's not what we want at all. So we've listened."
Shadow chancellor Ed Balls said: "Another day, another Budget tax u-turn - three successive u-turns in four days, all when Parliament is not sitting and just a few weeks after Ministers were defending these measures, show just what an embarrassing shambles George Osborne's Budget has become."
Independent Television News Limited 2011. All rights reserved.
Independent Television News Limited 2012. All rights reserved.
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|Publication:||Independent Television News Limited (ITN)|
|Date:||May 31, 2012|
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