HM Treasury and HMRC have published a technical note on the cap on unlimited income tax reliefs. It confirms that the cap will apply to reliefs which are currently unlimited and that it will be set at 25% of income or £50,000, whichever is greater. The cap on income tax relief for charitable donations has attracted a great deal of adverse comment in the media and the Government has announced a consultation on the detail of the policy (expected to be published later this year) to be followed by draft legislation. It is therefore possible that the cap will be watered down in respect of charitable giving.

See HMRC/HM Treasury Budget update note (PDF 126K) for more details.