Wealth management advisors warn the scale of Treasury’s crack down on an elite of wealthy foreigners living in the UK could undermine the London art market, drive much of the private equity industry abroad and trigger the sale of property and UK shares worth billions of pounds.

UK’s wealthiest non-domiciled residents are facing billions of pounds in capital gains tax (CGT) on UK-based assets under far-reaching legislation being drawn up by the Treasury, sending shockwaves through the wealth management industry, FT.com reports.

The extent of the Treasury’s ambition to target offshore trusts which enable ‘non-doms’ to escape tax on their UK investments has emerged during meetings between senior officials and professional institutes.

Wealth advisers fear the Treasury has underestimated the impact of the measures. The Society of Trust and Estate Practitioners, which represents advisers, is calling for ‘a considered economic assessment before radical changes are introduced and London . . . is damaged'.

Further reading:

Profession divided on non-dom numbers

Non-dom policy is 'squalid'
Read story in FT.com http://www.ft.com/cms/s/0/1e70b866-9ba1-11dc-8aad-0000779fd2ac.html