Brewin Dolphin is alarmed about the UK government’s plans to cap tax relief on donations to 25 per cent of a donor’s income when giving more than £50,000 (around $80,000).
The UK-based wealth manager called the claim that philanthropists are giving money to good causes as a way of dodging tax an “outrageous slur”.
The proposed measure, a part of the UK finance minister’s budget speech in March, could mean that many private investors will not be able give away as much as before, the firm said.
Brewin Dolphin manages over £24 billion on behalf of private investors, including £1.7 billion for registered charities.
The firm said that it has been concerned about the difficulties building for charities for years: “The pressure began with the removal of dividend tax credits in 1997 by the then New Labour government which drastically reduced charities’ income,” the firm said. “Since then the burden has increased with negligible interest rates and yet rising demands from beneficiaries, as government spending cuts have built up.”