Profession backs reform of tax rules for foreigners

However the support is conditional, and appears to be aimed at preventing radical reforms being put in place which could see wealthy foreigners leave the UK, according to the FT.

The ICAEW is calling for greater certainty in the rules and suggests that people lose their non-domicile status after 17 years.

Big Four firm Ernst & Young also backs simplification of the rules and said exemption from tax on worldwide income should only apply for ten years.

Currently wealthy foreigners who reside in the UK but claim their domicile is overseas avoid paying tax on their worldwide income and capital gains.

The Treasury has promised to close the loophole, which could generate revenues of between £1bn and £1.5bn.