Charities E-Bulletin Article
In his recent budget the Chancellor announced a limit on uncapped income tax reliefs from 6 April 2013. For anyone seeking to claim more than £50,000 of relief, a cap will be set at 25 per cent of income or £50,000, whichever is the greater.
The move has been met with significant opposition from the sector with claims that it undermines the rhetoric underpinning the Government's Big Society agenda. However, the Budget documents state that:-
"The Government will explore with philanthropists ways to ensure that this measure will not impact significantly on charities that depend on large donations".
On a more positive note, the Government again confirmed that it will introduce in the Finance Bill 2012 a VAT exemption for services shared between VAT-exempt bodies, including charities and universities.
The Chancellor also confirmed some good news on Gift Aid; firstly, that the Gift Aid Small Donations Scheme will be introduced with an increase on eligible donations to £20 and, secondly, a reduction of administrative burdens on charity shops that claim Gift Aid on donations.
For futher information please contact John Pindard.