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The Centre for Social Justice (CSJ) has urged the Chancellor to rethink Government plans to cap tax relief on charitable donations in an open letter sent to the Treasury

With the backing of more than 70 effective poverty fighting charities, the CSJ argues that the proposed cap would reduce the funds given directly to frontline groups by the most generous Philanthropists.

In the letter to the Chancellor, Christian Guy, Director of Policy at the CSJ, wrote

"We fully support the principle that wealthy individuals must pay their fair share of tax. It is counterproductive, however, that this should come at the expense of frontline charities working with the most vulnerable members of society.

“We know that 8 per cent of donors give nearly half of all donations and with the limitations imposed by this cap, those donors will face either a higher tax bill, or the prospect of giving less to charity in order to maintain their current overall tax burden.

“We urge the Government to rethink this peculiar policy. It risks jeopardising the admirable Big Society agenda, and more widely, it will damage the capacity of the voluntary sector organisations that the Government hopes will lead a social recovery.”

Written by Scott Buckler
Wednesday, 04 April 2012 11:11

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