THE latest U-turn by the Coalition Government has been welcomed.
George Osborne set out a plan in the Budget to cap tax relief on donations to good causes, but this has now been dropped – the third Budget reversal this week.
Increasing pressure on the Chancellor had continued to build from charities in the region and across the country.
Critics had said that limiting tax relief to the first £50,000 of a donation would have cut contributions.
Rob Williamson, chief executive of the Tyne and Wear Community Foundation, said: “It is great news that charity donations will no longer be limited in this way, great news both for charities and for donors.
“We have seen a considerable amount of pressure placed on the Government to rethink this and it is great the ministers have changed their minds.”
He added: “The main issue from our point of view was giving people the confidence to continue these large donations and ending uncertainty.”
Mr Osborne said: “I can confirm we won’t be capping relief for giving money to charity.”