§ Mr. Moynihanasked the Chancellor of the Exchequer what steps he is taking to publicise the new tax reliefs for charitable giving.
§ Mr. Ian StewartThe Inland Revenue is today publishing, under the title "Tax Aid", two leaflets explaining the tax reliefs which will now be available for gifts to charities. These are designed to help both donors and charities to take full advantage of the new reliefs we have introduced.
One of the leaflets includes an explanation of the new scheme for tax relief for donations up to £100 a year under payroll giving schemes. Although the new relief does not start until April 1987, forward planning for schemes will be necessary and I hope that many employers will take part in the scheme and that charities and employees will encourage them to do so.
70WThe other leaflet includes a description of the relief for single donations by companies (other than close companies) up to 3 per cent. of their ordinary annual dividends. This relief, which is additional to the existing relief for charitable contributions made under deed of covenant, is available for payments made on or after 1 April 1986.
Together with the abolition of the £10,000 limit on higher rate relief for covenanted donations by individuals, these measures constitute the most substantial package of reliefs for charitable giving ever introduced. They have been very widely welcomed by the charities themselves and I hope that the public in turn will respond generously in supporting the valuable work charities carry out. In the Budget we forecast the cost of the new reliefs at £60 million in 1987–88, but that is intended only as an estimate and not as an upper limit on the relief available. If the new reliefs stimulate greater contributions to charity than we have anticipated, we will be only too pleased. The "Tax .Aid" leaflets should help to ensure that the new possibilities are as widely known and understood as possible.