Tax relief cap should be replaced with higher-rate Gift Aid scheme, says IoF

Tax relief cap should be replaced with higher-rate Gift Aid scheme, says IoF: Peter Lewis, chief executive of the institute, says that plans for the cap have already had a negative impact on philanthropy

The government should replace its proposed cap on tax relief on donations with a system that allows charities to reclaim all the tax paid by higher-rate taxpayers, according to the Institute of Fundraising.

The IoF said yesterday that 77 per cent of 687 of its members who responded to a survey favoured a system in which charities could reclaim all the tax paid by a higher-rate-paying donor under Gift Aid, in the same way as they can reclaim all the tax paid by a basic rate taxpayer.