Tax relief limit on charity to be axed in fresh U-turn

Chancellor George Osborne has dropped plans to limit tax relief on charitable giving, after protests from charities.

He announced in the Budget a limit of £50,000 or 25% of income, whichever was higher, on the amount a person could donate instead of paying it in tax.

It is the latest in a series of changes to Budget policies this week, including the pasty and caravan taxes.

Charities welcomed the news of the change, but Labour called it another U-turn by a "shambolic" government.

James Landale reports.

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