Controversial plans in the Budget to limit the amount of tax relief on charitable donations have been dropped after protests from charities, philanthropists and Tory MPs. It follows Treasury u-turns this week on the "pasty tax" and "caravan tax."
George Osborne's decision to scrap the charity tax cap came following weeks of talks with charities.
Since the Budget announcement, the Treasury has been holding discussions with charities and major donors to discuss the impact they believed the cap could have on charitable giving.
Meanwhile, more than 1,000 charities signed up to a call by the Charities Aid Foundation (CAF) for the Government to think again.
Controversial plans to cap tax relief on charitable donations have been scrapped by Chancellor George Osborne.
This is another big Budget U-turn, this time on the charities tax.