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Nick Clegg
Nick Clegg, who is due to meet charity representatives at an event to celebrate philanthropy this week. Photograph: Lewis Whyld/PA
Nick Clegg, who is due to meet charity representatives at an event to celebrate philanthropy this week. Photograph: Lewis Whyld/PA

Charity tax relief plans attacked by philanthropists

This article is more than 11 years old
Representatives of leading charities and trusts join chorus of critics over move to limit tax relief on donations

Leading philanthropists have warned that the government's plan to limit tax relief on charitable donations will put people off giving money.

In a letter to the Sunday Telegraph, philanthropists and representatives of charities including three members of the Sainsbury family and the chief executive of Marie Curie Cancer Care called the proposals "confusing and dispiriting".

The letter, which was also signed by Gordon Roddick, the widower of the Body Shop founder Anita Roddick, stated: "The government was making progress in encouraging more people to give more of their wealth to charity. The proposal in the budget to cap charity tax reliefs is a brake on philanthropy that may deter future donors."

The government has seen a growing revolt over the plans to limit tax relief on charitable donations to 25% of earnings.

The business secretary, Vince Cable, has warned that the move could harm university funding, and David Davis, the influential Tory backbencher, has said it would be better to ensure charities are scrutinised to make sure they are not being used for tax avoidance.

Nick Clegg, the deputy prime minister, is due to face charities enraged at the plans at an event this week described by critics as a damage limitation exercise.

Tuesday's event has been billed as a celebration of the "important contribution made by the arts to communities" and as "a mark of the coalition's commitment to culture and the arts".

John Summers, chief executive of the Hallé symphony orchestra, whose major donors have expressed concerns, said he believed the frantic activity was a sign that ministers were desperate to kill the row. "My chairman was invited at very short notice to 'celebrate' philanthropy, which feels very much like damage limitation to me," he said.

More on this story

More on this story

  • Charity tax plans to be reviewed

  • Treasury reveals how little tax the super-rich pay

  • Ministers look at measures to protect charities from tax changes

  • Charity tax relief cap: Tory treasurer adds voice to criticism

  • Nick Clegg to go on charm offensive amid fury over charity tax cap

  • Vince Cable and David Davis break ranks to join outcry over charity tax cap

  • David Davis calls on government to rethink charity tax relief plans

  • Ministers look again at charity tax relief cap

  • Tax and politics: the T-word

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