THE Government announced on May 30 they will not implement the proposals made in the 2012 budget cap is placed on the tax relief available when a charitable donation made by an individual.
Measures included as part of the government agenda that aims to prevent avoidance, income tax using the "uncapped tax relief". It is proposed that the cap is set on qualifying donations to eliminate 25% of earnings or £ 50,000, whichever is greater.
The announcement has not implemented measures followed a negative reaction to the plan. According to a survey of more than 200 donors who made the Charity Aid Foundation, eight out of ten said that giving is affected by the proposal.
Almost half of those donors, all of them, on average, contributing more than £ 50,000 per year for charities in the last three years, said the tax changes will be forced on them to take donations by more than 40%, while 83% of donors said that change is bound to reduce the overall charitable donations.
This announcement followed earlier amend "pale tax" and "tax caravan". While it is true that the Government must listen and respond to comments and criticism, it is the best way to develop tax policy?
Allocation of gift aid proposal as an example, where the Government's desire to avoid taxes impressed understood, it is clear that the planned measures miss the point.
Gift Aid is a tax incentive to persuade someone to do something they are not, the income tax savings for taxpayers and a higher level of ability charities to reclaim tax.
Government keen to encourage private sector investment, but employers should have a clear vision of how tax policy to create funds for the long term.
There may be a perception that tax policy is determined "on foot". Therefore, the government's approach to tax changes have done little to create a stable tax framework vision of entrepreneurs in need.
Tim :: Mallon is the chairman of the North East England branch of the Chartered Institute of Taxation and tax Ryecroft Glenton partners.
Measures included as part of the government agenda that aims to prevent avoidance, income tax using the "uncapped tax relief". It is proposed that the cap is set on qualifying donations to eliminate 25% of earnings or £ 50,000, whichever is greater.
The announcement has not implemented measures followed a negative reaction to the plan. According to a survey of more than 200 donors who made the Charity Aid Foundation, eight out of ten said that giving is affected by the proposal.
Almost half of those donors, all of them, on average, contributing more than £ 50,000 per year for charities in the last three years, said the tax changes will be forced on them to take donations by more than 40%, while 83% of donors said that change is bound to reduce the overall charitable donations.
This announcement followed earlier amend "pale tax" and "tax caravan". While it is true that the Government must listen and respond to comments and criticism, it is the best way to develop tax policy?
Allocation of gift aid proposal as an example, where the Government's desire to avoid taxes impressed understood, it is clear that the planned measures miss the point.
Gift Aid is a tax incentive to persuade someone to do something they are not, the income tax savings for taxpayers and a higher level of ability charities to reclaim tax.
Government keen to encourage private sector investment, but employers should have a clear vision of how tax policy to create funds for the long term.
There may be a perception that tax policy is determined "on foot". Therefore, the government's approach to tax changes have done little to create a stable tax framework vision of entrepreneurs in need.
Tim :: Mallon is the chairman of the North East England branch of the Chartered Institute of Taxation and tax Ryecroft Glenton partners.
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