The Chancellor has dropped plans to limit tax relief on individual charitable giving after mounting protests from charities.
This is the latest Budget policy U-turn after the government relented on the ‘pasty tax’ and caravan taxes earlier this week.
Osborne said in the Budget that from April 2013 the maximum amount that would be able to be reclaimed in tax relief, including on charitable giving, was set at 25% of income or £50,000, whichever is greater.
Not long after he told The Telegraph he was "shocked" by the scale of tax avoidance and the charity tax relief was a specific loophole he wanted to close.
Business and finance journalist