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Support for charity tax cap rethink

More than half (55%) of voters want the Government to rethink its planned cap on tax relief for charitable donations, according to a new poll.

And fewer than a quarter (24%) of those surveyed by ComRes for the Charities Aid Foundation (CAF) said that the Government should resist pressure to back down on Chancellor George Osborne's Budget proposal, which would cap tax relief at £50,000 or 25% of income.

Prime Minister David Cameron this week appeared to hint that he was prepared to compromise on the issue, saying he wanted to listen to critics and take time to make sure the Government "get it right".

A full consultation on the proposed caps on a range of reliefs is to take place over the summer, following talks between ministers and charities and philanthropists, who fear the change will impact heavily on giving to good causes.

More than 1,000 charities have backed the CAF's call for the Government to think again.

The survey of 2,000 people found that 55% agreed and 24% disagreed when asked whether the Government should reconsider the plan given the concerns raised by charities. The remaining 21% did not know.

CAF chief executive John Low said: "Fewer than a quarter of the public believe the Government should stick to their policy of capping tax relief on charitable donations. This is not an argument about saving tax, it is about encouraging wealthy people to contribute to the public good.

"It is deeply corrosive to imply that these people are tax-dodgers. To be affected by this tax cap you have to give away far, far more than you could ever claim in tax relief.

"Claiming that tax relief simply subsidises wealthy people's personal interests is demeaning to those who put their hands in their pockets and pay for projects which support public services and help vulnerable people.

"At a time of deep cuts to public services, we should be praising people who help fill the funding gap, not deriding them as self-interested tax avoiders."

https://www.cafonline.org/(Charities Aid Foundation)

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