Substantial donor laws 'impossible'

A delegation of charity tax experts has called for legislation on substantial donors to be repealed and rewritten from scratch.

Substantial donor legislation, applicable to gifts of more than £25,000, was introduced two years ago to stop wealthy givers using donations as a tax dodge. But charity law and finance experts, who met HM Revenue & Customs in June before a consultation on the legislation, believe the laws are so complex they are almost impossible for charities to obey.

Nick Brooks, one of the delegates and chair of the charity technical body at the Institute of Chartered Accountants, said the scope of the law was far too broad. "If you give a charity a donation and then five years afterwards your son marries someone who works for the charity, that charity loses tax relief on his spouse's salary," he said.

Other organisations calling for a change in the law are the Charity Tax Group, Philanthropy UK and Stewardship, the Christian lender.

- See Editorial, page 12.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus