Government’s cap on tax relief – effect on Charities
Date: 12th April, 2012 | Author: Louise Giles | Comments: 0
According to a survey published on 12 April by The Charities Aid Foundation (CAF) nine out of ten charity executives believe the government's cap on tax relief will discourage donations from major donors.
The Chancellor is introducing the measure in order to prevent the wealthiest mitigating the amount of income tax they pay by taking advantage of tax relief on charitable donations.
The CAF surveyed 120 charity chief executives and senior executives the survey revealed that 88% have serious concerns over the effect the chancellor's decision to cap tax relief will have, with 78% calling on the government to reverse the move.
Charity executives also expressed fears about the potential impact on their own charities' income, with half of those expecting a reduction in income predicting their major donations would fall by at least 20 per cent.
More than 2,200 charities and individuals have signed up to support the campaign against the tax, 'Give it Back, George'.