The Government’s attempt to tweak its overhaul of non-dom taxation is a “superficial fix” that does nothing to reverse the damage already inflicted, according to a warning from deVere Group.

The financial advisory firm suggested that the adjustment, which would ensure previous foreign earnings aren’t taxed when moved between overseas accounts, fails to address the broader policy failures that have already driven a wave of departures.

deVere Group said it had seen a surge in clients actively seeking alternative jurisdictions – such as Dubai, Italy and Switzerland – since the non-dom announcement was made in Rachel Reeves’ Budget last October.

CEO of deVere Group, Nigel Green, called the revision a “small technical fix” that “doesn’t alter the bigger picture”.

“High-net-worth individuals have already drawn their conclusions and are making moves accordingly,” Green added. “The real issue is inheritance tax (IHT).”

In the past, non-doms could safeguard pre-existing assets from taxation, but with these protections now eroded, they would face a 40% IHT charge on their entire global estate.

“Previously, non-doms had a clear understanding of how their wealth would be treated,” said Green. “That framework has now been upended, leaving them exposed in ways they never anticipated.”

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

“This minor adjustment does nothing to alter the fact that without meaningful reform, the mass migration of wealth will continue unabated.”

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