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Press watch: Charity tax row

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‘The row between charities and the government over cuts to tax relief deepened on Tuesday after Downing Street suggested that some wealthy people were abusing the system.

‘Charities reacted angrily to plans announced in last month’s Budget to cap the amount of money that donors can give tax-free. From next year, the total tax relief that anyone can claim will be limited to 25 per cent of their income or £50,000, whichever is greater. This will include relief on charitable donations.

‘Tensions increased on Tuesday after Downing Street suggested wealthy people were sometimes donating to bogus charities. “They may in some cases be giving that money to charities that do not do a great deal of charitable work,” said a spokesman. “The system as it stands can be and is being abused.”’

Financial Times, 11 April 2012

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