§ Mr. Chris SmithTo ask the Chancellor of the Exchequer what was the cost to the Treasury of abolishing the higher rates relief limit for charitable covenants in 1986–87 and the first six months of 1987–88; and how much of the cost was attibutable to such donations to professional arts organisations with charitable status in the same periods.
§ Mr. Norman LamontThe cost to the Exchequer in 1986–87 of abolishing the limit for higher rate relief for charitable covenants made by individuals was about £1 million. This represents the repayments of basic rate tax on new covenants over £10,000. The associated claims for higher rate relief are unlikely to affect tax payments made before the end of 1986–87. Costs for later years will be higher, but information for the first six months of 1987–88 is not available. It is not possible to identify separately donations to professional arts organisations with charitable status.
§ Mr. Chris SmithTo ask the Chancellor of the Exchequer what was the cost to the Treasury of introducing relief for charitable donations through payroll deduction schemes in its first six months from 6 April; and how much of the cost was attributable to such donations to professional arts organisations with charitable status.
§ Mr. Norman LamontThe cost of tax relief for donations to charity made through payroll deduction schemes is estimated at about £80,000 in the six months from 6 April 1987. This represents only the first six months of the new relief. The number of payroll deduction schemes set up by employers is rising steadily and is now over 1,800. The cost of the relief will therefore increase. No information is available on the destination of donations.