The Government reached a compromise over the non-dom issue after realising it couldn't "have its cake and eat it too", according to SG Hambros.
The firm says the Budget considerably toned down some of the core issues for non-domiciles, such as the taxation of offshore trusts holding offshore assets for non-doms.
Ownership of assets by non-doms via an offshore trust will now not be taxed more severely than direct ownership, which had been the Government's original intention.
Rose Wong, head of international financial planning at SG Hambros, says the Government “listened to the people and responded intelligently and reasonably”.
“Although some less welcome points remain, such as the close company rules and rules for mixed funds, it seems that the threat of non doms moving out of the UK and to more tax favourable jurisdictions was clearly taken seriously by the Government and it has responded appropriately,” Wong says.
“As a result, the Government has taken a stance of reasonable compromise. We have to take the view that you can't have your cake and eat it.”
Wong adds: “We hope that the final legislation over the next few weeks will be clearly drafted and details fine tuned.
“After this period of sudden uncertainty and angst, we will be looking for assurances from the Government that there will no further changes for several years to come, in order to restore confidence and stability to the non-dom regime.”
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