The move will be seen as a stalling tactic to relieve pressure from the Labour party, which has received donations from prominent ‘non-doms’ including Lakshmi Mittal, the steel tycoon.
But any change to the tax status of wealthy foreigners could be harmful to the UK economy according to tax experts.
Loughlin Hickey, head of tax at KPMG, said the combined affect of a review of the tax rules and the increase in national insurance contributions would make the UK a less attractive location for top business people.
He said: ‘There will be concern that these measures will make the UK a less attractive place to locate to in the longer term.’
Previous attempts to reform the rules have met with such fierce opposition that governments have backed off from making any changes.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy