Financial Times FT.com

Treasury looks at 50% tax relief to raise extra £5bn for charities

By John Willman, Business Editor

Published: December 24 2008 02:00 | Last updated: December 24 2008 02:00

The Treasury is looking at a scheme to persuade Britain's wealthy to donate an extra £5bn a year to help relieve world poverty, at no cost to the exchequer.

Although the richest 20 per cent give most to good causes in absolute terms, they donate on average 0.8 per cent of their income to charity, compared with the 3 per cent donated by the poorest fifth.

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