Government U-turn on charity tax relief cap

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Chancellor George Osborne has done a U-turn on plans to cap tax relief on charitable donations.

Osborne has dropped plans to cap tax relief at £50,000 or a quarter of a donor's income - whichever is highest - as set out in the March Budget, reports the BBC. In the latest in a series of embarrassing climb-downs, there will be no limit on what an individual can donate to charity and offset against their tax liability - as was the situation before the Budget. The move comes after the government recently scrapped planned taxes on pasties and caravan taxes. "I can confirm that we will proceed next year with a cap on income tax reliefs for wealthy people, but we won't be capping re...

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