Unlimited tax reliefs

The recent Budget announcement regarding a cap on unlimited tax reliefs, while fairly brief, has caused some concern amongst those likely to be affected.

The Finance Bill 2013 is likely to include a cap on individual tax reliefs of the greater of 25% of total income, or £50,000, and will come into force from 6 April 2013.

The main reliefs likely to be affected are those which are currently unlimited, namely loss reliefs (unless claimed against the same business), charitable donations (including gift aid and gifts of qualifying property) and qualifying loan interest, while those reliefs which are already subject to a cap will not be affected.

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