The Spectator’s Notes | 21 April 2012

On Monday, via the BBC, the Treasury put out the line that ‘10 per cent of those earning more than £10 million a year pay less than 20 per cent in income tax.’ It was not explained, or asked by the BBC, how this could be, or how many people were involved. Even in the era of preposterous bonuses, the number of people registered as earning more than £10 million p.a. is, I discover, only 200. So 10 per cent of them is 20 people: the total sums involved cannot amount to much more than £100 million, probably less. In the context — the decision to cap the amount of tax relief on charitable donations — the line was irrelevant.  The government, represented by the unfortunate Treasury minister David Gawke, is trying to shift its ground. It now tacitly admits that avoiding income tax by paying to charity does not make the rich richer, since they have to pay much more to charity than they can reclaim against tax.