Leading charity representatives met the Treasury Minister and Civil Society Minister recently to discuss the cap's effect on large charities. David Cameron was also set to meet representatives, although the idea was panned amid rumours that the conversation would be dominated by the cap tax relief. Meetings are now being placed among ministers behind closed doors.
The solution suggested by the Treasury is to allow the cap to be lifted from 25 per cent to 50 per cent for donations and that donors can roll over unused reliefs if they are not used in the first year. Despite this proposition, charity representatives have said they will not settle for anything less than the sector being complete exempt from the rule.Oxford Economics have also predicted a loss of £500m in donations as a result of the tax change.
Source: The Independent