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November 26, 2012

U.K. Government Mulls Targeted Tax Break for Big Givers

A report to Britain's cabinet on ways to increase giving for the arts and cultural preservation calls for rewarding the country's most generous donors with a lower income tax rate, according to the U.K. daily The Telegraph. The government commissioned the study following the outcry earlier this year from charities and philanthropists over a since-scrapped proposal to cap tax relief for charitable giving.

The study urges a cut in the top rate for those who make a "minimum period financial commitment to a charity" and also recommends steps to encourage philanthropic bequests whereby wealthy donors can minimize inheritance taxes. "There is enormous potential for the arts to benefit from philanthropy over the next few years, and we need to look at new ways of unlocking it," said Culture Secretary Maria Miller, who is considering the proposal.