David appears on Peter Levy Show to discuss the “Charity tax”


David appeared on BBC Radio Humberside’s Peter Levy Show to discuss the so-called “charity tax”. He said that, although there were clearly “bogus” charities that exist purely for the benefit of very wealthy taxpayers, these were a small minority. He stressed that charities should not all be “tarred with the same brush”. David used the example of a man earning £3m a year, of which he gives £2m to a cancer charity. He then pays 50% on the remaining £1m, on top of the £2m he has given to charity. Although the tax bill has been reduced, in no sense has the man sought even to improve his own financial position. The effective taxation of charitable donations halves the amount very wealthy individuals can donate, disincentivising the philanthropy which we should applaud.

David then went on to say that the abuse of the charitable system should be ended through the closing of loopholes, not a blanket “charity tax” as is proposed at present.