Independent museums have welcomed the Treasury's decision last month to allow charities to claim back 22 per cent of donations in gift aid, even though the standard rate of income tax has fallen.
With effect from this month, income tax decreases by two points to 20 per cent. Charities feared that this would mean their tax breaks would also fall. But the chancellor announced a three-year extension to 2011.
The Charities Aid Foundation anticipated a funding shortfall of £90m a year for UK charities had the threshold not been extended.
Matthew Tanner, secretary of the Association of Independent Museums, said: "We are delighted at the chancellor's move to mitigate the impact of the new income tax, which has meant charities won't lose out on the gift aid reclaim rate."
With effect from this month, income tax decreases by two points to 20 per cent. Charities feared that this would mean their tax breaks would also fall. But the chancellor announced a three-year extension to 2011.
The Charities Aid Foundation anticipated a funding shortfall of £90m a year for UK charities had the threshold not been extended.
Matthew Tanner, secretary of the Association of Independent Museums, said: "We are delighted at the chancellor's move to mitigate the impact of the new income tax, which has meant charities won't lose out on the gift aid reclaim rate."
