Proposals for softening the Budget crackdown on non-dom individuals have failed to reverse the wave of departures of wealthy people from the UK, according to a new report.

Last month Chancellor Rachel Reeves said she may soften the move in the October Budget to scrap the non-dom tax status. 

The Government’s attempts to tweak its overhaul of non-dom taxation is a superficial fix and will not reverse the damage already inflicted according to global financial adviser deVere Group.

DeVere said the adjustment, ensuring previous foreign earnings are not taxed when moved between overseas accounts, fails to address the broader policy failures that have already driven a wave of departures.

Recent figures suggest many millionaires have left the UK in the last 12 months.

According to recent report in the Times, the UK has seen 10,800 millionaires leave the country in the past year, up 157% on 2023.

DeVere said the firm has already seen a surge in clients seeking alternative jurisdictions, such as Dubai, Italy and Switzerland, since October.

Nigel Green, CEO of deVere Group, said Britain has made itself un unwelcoming environment for internationally wealthy individuals.

He said: “This revision is a small technical fix, but it doesn’t alter the bigger picture. High-net-worth individuals have already drawn their conclusions and are making moves accordingly.”

He also shared concerns over the impact of the Government’s attempts to bring pensions and other established wealth structures into the realms of inheritance tax.

Mr Green said: “The real issue is inheritance tax. Previously, non-doms had a clear understanding of how their wealth would be treated. That framework has now been upended, leaving them exposed in ways they never anticipated.

 “If policymakers want to halt the outflow of capital and talent, they need to go beyond cosmetic tweaks and tackle the real deterrent: IHT.”

He said that he expects the mass migration of wealth to continue unabated unless the October Budget changes are reversed.