Robert Brodrick, chair of the firm, said: “It's going to be difficult for the chancellor to balance the perceived unfairness of a system that allows people to live in the UK without paying tax on a worldwide basis, with encouraging ultra-high-net worth individuals to base themselves and their businesses in the UK where they will pay a significant amount of tax.
“The consequences of getting it wrong will be damaging to both the economy and our position as a leading global financial centre. We predict that a lot of non-doms currently based in the UK will leave and move to jurisdictions like Italy where they have introduced an extremely attractive non-dom regime."
Partner at GSB Capital, Craig Ritchie said if Hunt goes through with the rumoured plan this would cause a "significant shift" from the current regime.
"The wealthiest and best advised non-doms are likely to adapt swiftly, possibly utilising complex structures to counter the impacts of any scrappage.
"Competition from other countries offering tax incentives will lead to globally mobile families reconsidering their residency choices. Regardless of whether any change is implemented, some non-doms will nevertheless take action to protect their wealth amidst tax status uncertainties," he added.
alina.khan@ft.com
