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.