Editorial: The tax authorities should think again on this draconian legislation

By Stephen Cook, Third Sector, 2 July 2008

In his 2006 Budget, the Chancellor introduced measures giving HM Revenue & Customs powers to reclaim tax relief from charities on any financial benefits they grant to people - or to anyone connected with such people - who donate large sums of money to them.

In order, for example, to discourage the kind of arrangement whereby I give your charity £100,000 and the charity soon afterwards gives my daughter a job, the regulations say that her salary, in the circumstances, will not count as charitable expenditure and will not qualify for tax relief. In another...