The Association of Foreign Banks has warned the UK that it is running the risk of making the country a less attractive home for banks because of recent tax policies.

AFB managing director John Treadwell said the government needed to be careful about sending out messages that suggested London was 'not a friendly place for foreign banks'.

'The government is in danger of going down this route with its recent announcements on, for example, offshore accounts, proposed taxation changes for non-domiciled residents, changes to residency rules and the new work permit system,' Treadwell told the FT.

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