In an article for The Scotsman, Joint Senior Partner Douglas Connell discusses the restrictions announced in the 2012 Budget on the application of Gift Aid for charitable giving.

Douglas notes that the announcement has"created confusion and uncertainty regarding the extent of the tax relief available to those big earners who are philanthropically inclined".

Douglas also says:"One of the most effective incentives for charity giving is gift aid. Under the gift aid scheme, charities can reclaim basic rate tax (20 per cent) from HMRC on a donation's gross equivalent. The effect is that £100 donated to a charity under the gift aid scheme is consequently worth £125 to the charity.

"For higher-rate taxpayers gift aid has the quality of mercy – it is twice blessed, blessing those that give and those that receive. So the higher-rate taxpayer is able to claim tax relief on the gross amount of the donation. The only limit on that amount of tax relief is the amount of income subject to higher-rate tax."

To read the article in full, 'The Chancellor's attack on gift aid could hit charities, not just would-be philanthropists', please click here. This article was also covered in The Lawyer, 'Giving in a material world', to read this article in full click here.