Almost £1.5bn UK tax relief claimed on individuals’ charity gifts
An article in The Times has stated that almost £1.5bn UK tax relief was claimed on individuals’ charity gifts last year. Around 50% of the donations declared were made by individuals with incomes over £250,000, raising the question of whether tax relief on charitable donations disproportionately benefits the rich. Another fact noted was that a significant proportion of the gifts were made by individuals over 65.
The question is then whether tax relief on charitable donations is costing too much? It’s possible that Gift Aid and the lower inheritance tax rate of 36% (which applies where at least 10% of the net estate is left to charity) may come under scrutiny.