Budget 2012 and the proposed cap on tax relief on charitable giving - a success story for the sector

In Budget 2012 the Chancellor announced a cap on unlimited tax reliefs, including those that donors receive on charitable donations. The new cap on income which can be offset against tax is £50,000 or 25% of income, whichever is the greatest of the two.

CFG strongly opposed the inclusion of tax reliefs on charitable giving within this measure and was signed up to the sector-wide 'Give it Back George' campaign. There was a great deal of concern about the damaging message it sends to link tax efficient philanthropy with tax avoidance, and that it would cost organisations in the sector a significant amount of funding as reveune from large donations decreases.

On 31 May 2012 the Chancellor announced that the proposal would be dropped following high profile coverage and debate on the issue. For more information on the success of the campaign, see the Give it Back George website

Following the Budget, CFG and BDO prepared a joint briefing paper outlining more information on the impact of the proposals and the CFG position:

Briefing paper: Cap on income tax relief on charitable givingpdf icon

Briefing paper: Summary versionpdf icon

  • Email
  • Twitter
  • Facebook
  • Linkedin

© Charity Finance Group / © Charities Resource Network / Registered Office: 15-18 White Lion Street, London, N1 9PG.
A Company Limited by Guarantee. Registered in England No. 3182826, Registered Charity No. 1054914, Registered VAT No. 945 6038 09.