§ Mr. Soamesasked the Chancellor of the Exchequer if he will summarise in the Official Report what steps he has taken to facilitate the giving of corporate and personal donations to support the arts.
§ Mr. Norman LamontSince 1979 the Government have made very substantial improvements to the tax reliefs for corporate and personal donations to charities, including arts charities. These are as follows
1980 BudgetReduction of minimum period for charitable covenants for tax relief from seven to four years.Introduction of higher rate income tax relief for charitable covenants, originally with £3,000 limit.1982 BudgetExemption from stamp duty on charitable covenants and on conveyances and transfers of property of all kinds to a charity.1983 BudgetRemoval of limit for CTT exemption for gifts to charities within one year of death.Introduction of tax relief for an employee's salary costs met by a company during period of secondment to charity.Limit on higher rate income tax relief for charitable covenants increased to £5,000.1984 BudgetTax relief for an employee's salary costs met by an unincorporated employer during period of secondment to charity.1985 BudgetLimit on higher rate income tax relief for charitable covenants increased to £10,000.1986 BudgetLimit on higher rate relief for charitable covenants abolished.Income tax relief introduced from April 1987 for charitable donations made by direct deductions from wages and salaries under approved payroll giving schemes.Corporation tax relief introduced for single donations by companies (other than close companies) to charities, up to a maximum of 3 per cent. of dividends paid by company in relevant accounting year.