It is extraordinary that so many people (especially George Osborne and one suspects the rest of the cabinet) don't get it! Whether a high rate taxpayer is giving £1000 or £1,000,000 they do so out of taxed income (even if they are only paying 10%). Thus the high rate relief they get back only reduces the cost of the gift by 20% or enables them to give 20% more. It's arrant nonsense to suggest that people give to charities (even the Royal Opera House) to reduce their tax bill.
That said, there may not be many who would give more than 25% of their £200,000 income but I can think of quite a few generous souls who do give a lot more than the £50,000 proposed limit would cap. Can't help feeling that Zac Goldsmith's prediction that "....this will for ever be remembered as the Government that smashed the charity sector in this country." is rather over egging the situation.
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