U.K. Plugs Charity Tax Loophole for Wealthy

British Treasury officials moved Tuesday to close a charity tax break for wealthy individuals they say is used more to avoid taxes than to aid nonprofit groups, the Times reports.

Current law allows the country’s wealthiest taxpayers to take a 40-percent deduction on donations of cash, stock shares, or other assets to charity. Authorities say that rule has prompted promotions encouraging rich people to buy foreign shares at a discount, donate them, and claim tax relief on their full value.

Charities welcomed the crackdown, saying they usually do not benefit from such donations because the offshore entities that control the shares retain an option to buy them back later.