Video: George Osborne defends U-turn: 'any kind of charity tax cap would have been damaging' Controversial plans to cap tax relief on charitable donations have been scrapped by Chancellor George Osborne, the Treasury announced today. Announcing the latest in a string of U-turns on Budget proposals, following climbdowns on the "pasty tax" and "caravan tax" earlier this week, Mr Osborne said that he would be pressing ahead with the cap on income tax reliefs for wealthy people which do not relate to charitable donations.