The government has dropped plans to limit tax relief on charitable giving following a campaign backed by charities and the Museums Association (MA).
Chancellor George Osborne proposed introducing a cap on income tax relief for anyone claiming more than £50,000 or 25% of income in his budget earlier this year.
The move was criticised by charities and philanthropists for discouraging charitable giving, and the National Council for Voluntary Organisations (NCVO) launched the Give it Back, George campaign calling on the government to drop the so-called “charity tax”.
The MA also warned it would harm the department for culture’s drive to encourage philanthropy.
The Treasury announced today that it would go ahead with the cap on tax relief but that this would no longer include donations to charities. Osborne said: "It is clear from our conversations with charities that any kind of cap could damage donations, and as I said at the budget that's not what we want at all. So we've listened.”
Stuart Etherington, chief executive of the NCVO, welcomed the U-turn: “This is a victory for common sense and validates the strength of feeling from the thousands of organisations who lent their weight to the Give it Back, George campaign. This is a great day for philanthropy."
Mark Taylor, director of the MA, said: “This is clearly an excellent move and proof that when we all get together and have a clear message, the government can’t avoid us."
Stephen Deuchar, director of the Art Fund, had previously warned that the cap would have a “devastating impact” on fundraising appeals.
Referring to the U-turn, he said: “We are pleased that the government has listened at last. In the arts, it would have put at risk building projects, endowment appeals and the quality of public collections which attract millions of visitors each year.
"The challenge now - and it is considerable - is to rebuild the trust of donors and to get philanthropic giving back on track.”
Suzie Tucker, head of strategy and delivery at the National Museum Directors’ Conference (NMDC), said: “UK museums have been major beneficiaries of the generosity of wealthy individuals and were deeply concerned about the potentially devastating impact of a cap on their ability to fundraise for future projects.
"NMDC joined voices from across the charity sector calling for charitable donations to be exempted from the cap, and is encouraged to see that the government has listened to our concerns.”
Chancellor George Osborne proposed introducing a cap on income tax relief for anyone claiming more than £50,000 or 25% of income in his budget earlier this year.
The move was criticised by charities and philanthropists for discouraging charitable giving, and the National Council for Voluntary Organisations (NCVO) launched the Give it Back, George campaign calling on the government to drop the so-called “charity tax”.
The MA also warned it would harm the department for culture’s drive to encourage philanthropy.
The Treasury announced today that it would go ahead with the cap on tax relief but that this would no longer include donations to charities. Osborne said: "It is clear from our conversations with charities that any kind of cap could damage donations, and as I said at the budget that's not what we want at all. So we've listened.”
Stuart Etherington, chief executive of the NCVO, welcomed the U-turn: “This is a victory for common sense and validates the strength of feeling from the thousands of organisations who lent their weight to the Give it Back, George campaign. This is a great day for philanthropy."
Mark Taylor, director of the MA, said: “This is clearly an excellent move and proof that when we all get together and have a clear message, the government can’t avoid us."
Stephen Deuchar, director of the Art Fund, had previously warned that the cap would have a “devastating impact” on fundraising appeals.
Referring to the U-turn, he said: “We are pleased that the government has listened at last. In the arts, it would have put at risk building projects, endowment appeals and the quality of public collections which attract millions of visitors each year.
"The challenge now - and it is considerable - is to rebuild the trust of donors and to get philanthropic giving back on track.”
Suzie Tucker, head of strategy and delivery at the National Museum Directors’ Conference (NMDC), said: “UK museums have been major beneficiaries of the generosity of wealthy individuals and were deeply concerned about the potentially devastating impact of a cap on their ability to fundraise for future projects.
"NMDC joined voices from across the charity sector calling for charitable donations to be exempted from the cap, and is encouraged to see that the government has listened to our concerns.”
