CAF RESPONDS TO COMMENTS MADE BY TREASURY MINISTER DAVID GAUKE

Responding to comments today by the Treasury minister David Gauke, John Low, Chief Executive of the Charities Aid Foundation, said:

“This has been a shambles. The Government simply has not thought this through.

“The Government admitted today that this policy will have an impact of charities.  It is astonishing that the Treasury did not properly assess the impact on charities of their new tax relief cap before announcing this damaging measure in the Budget.

“Hundreds of charities large and small are united in opposition to this measure and generous philanthropists across the country are demoralised by being branded tax dodgers.

“We are not asking the Government to drop caps on all tax relief. We are saying that ministers should think again about extending that cap on tax reliefs to include charitable donations.  If there is evidence of abuse then by all means put appropriate measures in place but a blanket cap throws the baby out with the bath water.

“Capping tax relief on charitable donations will raise relatively small amounts of tax but risks inflicting far greater damage on causes for the public good such as medical research and treatment, education and help for some of the most vulnerable people in society.

“Ministers talk about wealthy people opting out of tax. But donors who claim this element of tax relief give away far more than they could ever claim back. This will not hit the rich, it will hit vulnerable people in the UK and overseas and the causes we all care about. We need the Government to rethink their decision.”

Listen to David Gauke's comments on the Today programme.

 

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