The crackdown on non-domiciled taxpayers could kill off art donations from wealthy individuals and deter foreign collectors from lending works to local exhibitions.

The Victoria & Albert Museum, Tate and Courtauld Institute of Art have all expressed concerns about the impacts of the rules, the FT reports, as fears grow that the wealthy foreigners will leave the UK.

Under the new rules, non-doms bringing art into the UK from April will face a tax charge. This has prompted business figures to push the Treasury to create an exemption for art and heritage items that will benefit the public.

'A significant number of our most generous donors and enthusiastic supporters are believed to be non-doms. We are particularly worried about the current interpretation of the proposed rules on remittances, which may discourage non-doms from bringing art into the UK,' said Tate Trustees chairman Paul Myners.

The new non-dom rules will require non-doms to pay a £30,000 levy in order keep the foreign free from UK tax.

Further reading:

Digby Jones breaks ranks over non-dom tax

Lord Mayor of London attacks non-dom policy