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.
Richard Le Tocq, head of Locate Guernsey, discusses the chancellor’s approach to high net worth individuals, and why relocation is increasingly attractive to HNWIs
The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
Legislation on the NICs changes to be brought forward in the autumn following publication of 'the full effects of the changes to Class 2 and Class 4' in the summer
Following chancellor Philip Hammond’s Spring Budget speech, we explore the key takeaways for businesses and individuals