Charity tax relief proposals: The taxman’s greed will strangle Britain’s amazing culture of giving (to other countries))

Charities cannot exist without their generous backers, so a Treasury assault on them is intolerable.

Every year, at Conservative Party conference, a poster is brought out which actually makes the “Big Society” look like a reasonable and even inspiring idea. It shows two images: a handshake, representing co-operation, and a fist, representing “state control”. This is intended to represent the choice at election time: government coercion, or Conservative liberalisation.

The poster was never used during an election, perhaps due to its excessive honesty. This is just as well, because almost two years into David Cameron’s government, the fist of the state seems to be winning.

The taxman and the charity collector have long been enemies, and they are at war again. For years, HM Revenue & Customs has been jealous of the fact that the rich give so much of their money to charity and, in doing so, legally reduce their tax liability. The best-paid 1 per cent contribute 28 per cent of all income tax, and probably account for an even bigger share of charitable donations. Yet it is a Conservative chancellor, George Osborne, who has authorised the Treasury to pass a new law limiting the amount that can be donated, and counted against tax. The Treasury’s position is that the rich “must pay their fair share”. Read More

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