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.
Report argues that the government must change the way it makes tax and budget decisions
Drastically fewer offices for HMRC in the hope to reduce their running costs
Tayabali Tomlin and d&t directors launch £20 a month TaxGo service, aiming to be the 'biggest UK firm' by client numbers
Companies must report on their complex financial structures including offshore accounts and notify HMRC