Updated Monday afternoon
In addition to the extension of to VAT to alterations to listed buildings in the budget, the Chancellor of the Exchequer also put a limit on the tax relief that higher-rate tax payers can claim on donations to charities.
James Kirkup and Tim Ross reported in The Telegraph this weekend that George Osborne’s charity tax plan is unfair, says Church of England. This article quotes remarks from “the chief finance officer of the Church [Commissioners]” which were made as a comment to an article by Tania Mason for Civil Society Media: Osborne provides evidence of aggressive tax avoidance to justify tax relief cap.
The weekend papers have published a number of other articles about this limit.
Dalya Alberge and Daniel Boffey Nick Clegg to go on charm offensive amid fury over charity tax cap
Press Association Charity tax relief cap: Tory treasurer adds voice to criticism
Marina McIntyre Charity tax relief plans attacked by philanthropists
Patrick Wintour and Hélène Mulholland Ministers look at measures to protect charities from tax changes
Roya Nikkhah, Julie Henry and Robert Watts Charity tax relief cap under fire as philanthropists warn of funding crisis
Patrick Hennessy, Robert Watts and Roya Nikkhah Ministers sound retreat in charity tax row
Charity tax row: Government will ‘find solution’, says William Hague
Explanatory note: In the UK those who pay income tax can gift-aid their donations to charity, and the charity can claim back the income tax that has been paid at the standard rate (which is 20%). So for every 80p of donation, the charity can claim 20p (ie 25% of the donation) from the taxman. For those who pay income tax at a higher rate, the charity can still claim 25% of the donation, and the taxpayer can claim the difference between this and the actual tax paid. It is this last amount the budget will cap.