Wealth managers are celebrating a climbdown from the government on moves to tax the fees from non-doms.

Accountancy Age revealed the threat to the industry last week. The Budget's residence and domicile moves meant that payments to wealth managers, tax advisers and others fpr management of offshore funds would have been treated as a 'remittance' under the rules, and thus taxed.

After crisis meeting with the CBI, the British Bankers' Association and the London Investment Banking Association, the Treasury sent a letter to the BBA, saying the government would be ‘looking urgently’ at making necessary amendments to the finance bill.

'It was certainly not our intention that the legislation should have the effect you have described...the government is looking urgently at this issue with a view to addressing it through necessary amendments to the finance bill,' Jane Kennedy, financial secretary to the Treasury, wrote.

Further reading

Fund managers to lose out on non-dom fees

Wealth managers in crisis talks over non-dom fees