Charity donations

Kiran Stacey

This morning the prime minister’s spokesman was grilled by the Westminster press pack on why exactly the government was putting in place a cap on tax reliefs when it could reduce charitable giving.

This is the explanation the spokesman gave:

The reason was that certain individuals in this country on very high incomes are exploiting some of these reliefs to reduce their tax burden.

But surely the whole point of offering tax reliefs on charitable donations is to encourage wealthy individuals to give donations by allowing them to reduce their tax burden? The PM’s spokesman explained that it was not just use, but abuse of these reliefs that was concerning the government: