“It needs to be reviewed as it is already having an impact on charities ranging from fighting cancer to providing fresh water abroad.”
He added: “We need more philanthropy not less philanthropy and this is not the way to do it.”
Another MP privately raised fears the move would bring more political damage than money for the Treasury coffers, saying: “It is the signal it sends.”
Ministers have vowed to work with charities to ensure those that rely on large donations will not suffer.
But Mr Clegg insisted the move was needed to stop “very wealthy” people using the relief and other tax breaks to avoid paying income tax.
Defending the new limit, he said: “I don’t think a quarter of someone’s overall income for people who are in many cases multimillionaires is a terribly sort of restrictive cap — that still allows people to make very significant contributions to charity in a way that is preferential to their tax arrangements.”
