Readers’ forum: Tax treatment of gift of German shares

My client is a German national who is both UK resident and domiciled. She was about to make a substantial donation of quoted German stocks to a German registered charity. Until the recent Budget I was happy that she would be entitled to UK tax relief on the donation. Additionally the gift would not be subject to UK capital gains tax as the no gain-no loss rules would apply.

Following the chancellor’s announcement of the restriction of charitable reliefs to UK charities would readers confirm my understanding that such a gift by my client will no longer attract income tax relief and any capital gain on the gift would now be subject to UK capital gains tax. I also assume that the gift will be a potentially exempt transfer for inheritance tax purposes whereas before it would have been exempt.

Am I correct or have I misunderstood...