The Scottish institute claimed that an important element that made the UK economy competitive and attractive to foreign investment was the stability of the UK tax regime and the certainty of its impact. It believes that the current rules are broadly satisfactory and that there is no pressing need for change.

'The tax rules relating to residence and domicile should be see to be stable, not subject to arbitrary change, and above all not subject to the risk of any retrospective change,' said Ian Dewar, convenor of the ICAS tax committee.

'Prolonged review of these rules by successive governments creates uncertainty which is damaging to the economy.'