Tax changes 'to drive out foreign super-rich'

More than half of Britain's wealthiest people plan to leave or scale back their UK investments after a tax clampdown on "non-domiciled" foreigners, a survey has found.

The study, by the Society of Trust and Estate Practitioners suggests the Government's plans to tax the foreign super-rich would be counter-productive, as tax revenues would fall and assets would be sold.

The report will be used by tax planners to persuade the Treasury to rethink.

Under the proposed scheme, due to take effect in April, foreigners living in Britain for more than seven years will be asked to pay £30,000 if they wish to keep their foreign income out of the British tax net.

Wealthy individuals will be particularly affected by the closure of loopholes that have allowed them to escape tax on their UK assets held in offshore trusts.

The survey questioned tax advisers representing 22,000 non-domiciled clients.

Keith Johnston, from Step, said: "Instead of generating more revenue the Government's proposals will mean jobs, investments and tax revenue going abroad."