Nick Clegg, Britain’s deputy prime minister, told a private gathering of wealthy philanthropists this week that the government will amend its controversial plan to cap tax deductions on charitable gifts, according to The Telegraph.
The daily newspaper says a compromise proposal could be announced next month and a likely option is a 50-percent limit on the amount of gross income for which a taxpayer can claim charity tax relief, in line with U.S. law. The current U.K. government proposal is to limit the total amount of deductions an individual can claim per year to $80,000 or a quarter of income, whichever is higher.
The Telegraph says Mr. Clegg told a meeting of donors Tuesday at Whitehall, the British government headquarters, that they had “been beating us around the head and neck” on the proposal, which charities and philanthropists contend would deter big donations. “We need a cool look to understand it properly and hopefully get back to Britain being a great place to give,” he reportedly said.