Government U-turn on charity tax relief cap

clock

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax Planning

Demand for estate planning advice surges as IHT exposure set to triple

Demand for estate planning advice surges as IHT exposure set to triple

Advisers prepare for IHT reforms

Isabel Baxter
clock 21 October 2025 • 2 min read
Reeves has 'huge opportunity' to reform taxes in Autumn Budget

Reeves has 'huge opportunity' to reform taxes in Autumn Budget

‘Frankly, it’s become quite desperate’

Isabel Baxter
clock 14 October 2025 • 4 min read
IHT on pensions changes slammed as 'unworkable' - PIMFA

IHT on pensions changes slammed as 'unworkable' - PIMFA

Risk creating serious problems for bereaved families, trade body warns

Isabel Baxter
clock 24 September 2025 • 4 min read