Making up a trio of Budget U-turns in nearly as many days, the Chancellor has announced that he will not pursue an income tax relief cap on those who give to charities. However, the capping of other income tax reliefs will continue, subject to a consultation over the summer.
In the March Budget the Chancellor drew gasps from the charity sector by saying that all currently uncapped income tax reliefs would be capped at 25% of an individual’s ‘income’ (the exact definition of which is yet to be confirmed) or £50 000 whichever is greater.
The cap was intended to apply to all existing reliefs that are not otherwise restricted and would take effect from April 2013.
For example income tax relief...
