The Government is to grant income tax relief on the full market value of gifts to charity of quoted ...
The Government is to grant income tax relief on the full market value of gifts to charity of quoted shares and securities.
Any existing CGT relief due on these shares or securities will be passed on at the same time, removing any barriers facing those who wish to settle assets to charities through trusts.
Other simplification measures the Government introduced in its pre-Budget statement last week include the removal of the need for small charities to set up a subsidiary company to run their fund-raising activities.
This has been removed through the introduction of an exemption from tax for the profits of small fund-raising trades run by charities and the extension and aligning of income tax and VAT exemptions for fund raising events.
There has also been an extension to the VAT zero rating of advertisements bought by charities. The Government has raised the de minimis limit from £250 to £1,000, below which charities and other businesses do not have to account for VAT when they de-register.
Despite the measures, MP Howard Flight argued he was concerned about the long term outlook for charities because of a previous taxation change.
He said: "One of the acts of the new Government was to remove the ability from charities to reclaim ACT.
"At a stroke, this will cut charitable income by around £500m per annum by 2004."
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