Wealthy are giving to near-dormant charities to avoid tax, PM spokesman says

Wealthy are giving to near-dormant charities to avoid tax, PM spokesman says: Statement comes in the face of mounting criticism of the proposed cap on tax relief for large donations

Wealthy individuals are avoiding tax by giving to charities that do little charitable work, the Prime Minister’s spokesman said yesterday.

He was speaking in defence of a Budget decision that, from April 2013, tax relief will be given only on donations that, including Gift Aid, are under �50,000 or 25 per cent of a person’s income, whichever is higher.

The Prime Minister's spokesman said that some individuals were exploiting the reliefs to reduce their tax burden.