U.K. Lawmakers Expect About-Face on Charity Tax-Break Cap

Britain’s government is preparing to amend its controversial plan to impose a limit on tax deductions for charitable giving, The Independent and The Guardian report.

The dailies cite members of Parliament from Prime Minister David Cameron and Chancellor George Osborne’s Conservative party who say the government is laying the groundwork to ease the proposal to cap the amount of giving for which donors can claim tax relief at $78,000 or 25 percent of income, whichever is higher.

The plan has been roundly criticized by charities, which say it will deter big gifts, and politicians from all three main U.K. parties. Mr. Osborne has characterized it as part of a larger effort to curb tax avoidance by wealthy Britons.

Treasury department sources said cabinet ministers are considering an increase in the cap and allowing donation deductions to be rolled into subsequent years. The government has recently scrapped other unpopular budget measures, including a proposed tax on the sale of hot snacks.