§ Mr. Joel Barnettasked the Chancellor of the Exchequer what consideration he has given to permitting single donations to charities, up to a fixed maximum in any one year, to be deducted from gross income for tax purposes, to compensate for the loss of revenue to charities from seven-year covenants, as will arise following the introduction of the unified tax system on 5th April, 1973; and if he will make a statement.
§ Mr. NottMy right hon. Friend could not accept this proposal, which is open to a number of serious objections. However as my hon. Friend the Chief Secretary said, in last year's Finance Bill debates, my right hon. Friend is prepared to discuss with representatives of charitable organisations the question of loss of254W income which will arise on the introduction of the unified tax system.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer if he will compare the United Kingdom tax treatment of chariable gifts with that applying in the European Economic Community and the European Free Trade Association applicants to join the European Economic Community; and if he will make a statement.
§ Mr. NottMost of these countries allow charitable donations as a deduction from income subject to certain restrictions. I think that the covenant system which operates in the United Kingdom is to be preferred and that the estate duty and capital gains, tax reliefs, introduced this year, will be valuable incentives for charitable gifts.