Govt makes U-turn on charity tax relief cap

Chancellor George Osborne has done a U-turn on plans to cap tax relief on charitable donations.

Osborne has dropped plans to cap tax relief at £50,000 or a quarter of a donor's income - whichever is highest - as set out in the March Budget, reports the BBC. In the latest in a series of embarrassing climb-downs, there will be no limit on what an individual can donate to charity and offset against their tax liability - as was the situation before the Budget. The move comes after the government recently scrapped planned taxes on pasties and caravans. "I can confirm that we will proceed next year with a cap on income tax reliefs for wealthy people, but we won't be capping relief ...