City groups challenge ‘charity tax’

Milton Keynes community groups are backing a national campaign to stop plans to cap tax relief on charitable giving
Milton Keynes community groups are backing a national campaign to stop plans to cap tax relief on charitable giving

MILTON Keynes community groups have added their backing to a national campaign against the so-called ‘charity tax’.

MK Community Foundation & Community Action: MK, of Midsummer Boulevard, want Chancellor George Osborne to row back on a Budget pledge to cap tax relief for rich donors.

The government is keen to crack down on tax avoidance and sees the £50,000 tax relief cap as a way of doing that.

But charities and community groups say the proposal will have a huge negative impact on donations gifted to UK charities. A national campaign called ‘Give it Back, George’ has been joined by charities.

Julia Upton, chief executive of the MK Community Foundation, said the tax change serves to damage the big society. She said: “We develop community philanthropy and have close to 200 donors; the cap on income tax reliefs will seriously restrict our ability to raise money for vital causes supporting our community. Already we see community groups struggling to survive, therefore, this income cap is just another barrier to raising much needed funds. The government promotes the concept of a big society, but this tax change only serves to damage this aspiration.”