Rachel Reeves’ announcement of sweeping reforms that will significantly reduce the benefits of having so-called non-dom status will leave wealthy Britons scrambling for the exit, a campaigner has claimed.

Meanwhile, a law firm that provides legal services to private and commercial clients described the package of measures announced by the Chancellor yesterday as “a bit like the iceberg of the non-state Titanic”.

Ms Reeves announced major reforms in her Budget to prevent wealthy foreign nationals resident in the UK from avoiding paying tax on their overseas income.

Instead, it initiated a shift towards a more residence-based tax system; This means long-term UK residents will be expected to pay tax on global profits, regardless of their original residence.

The government predicts the overhaul will generate around £12.7bn in revenue to support essential public services over the next five years.

But the immediate result will be a cash outflow, says David Lesperance, whose firm, Lesperance and Associates, provides clients with expert immigration and tax advice to help them plan for their future financial security.

He told Express.co.uk: “It appears that significant lobbying efforts for a phased scheme have been ignored when the Remittance Basis disappears in April 2025.

“As a result, there will be a mad rush for the exits ahead of April Fools’ Day as HNW UK taxpayers flee The Nightmare from 11 Downing Street.”

Mr Lesperance pointed out that although the system known as the Temporary Repatriation Facility (“TRF”) has been extended from two to three years, the current Remittance Tax base will be eliminated by April 2025.

He continued: “The TRF rate is 12% for the first two years and 15% for year 3. One bright spot for non-doms is that TRF will apply to distributions from previously protected trusts. This will allow them to earn historical income.” It provides profit at the bargain rate.

“The bad news is that the Remittance Basis will disappear in April 2025 and there will be no grandfathering of excluded property/protected trusts.”

“Carried interest tax rates are also rising. This, combined with the ability of interest bearers to earn and maintain their wealth outside the UK, means Golden Geese from the City will fly to more tax-friendly destinations.”

Payne Hicks Beach Board President Robert Brodrick added: “The budget was a bit of an iceberg for the nonprofit Titanic. This isn’t mentioned much in Rachel Reeves’ long speech, but underneath the surface lies a 37-page Technical Note and a 103-page draft legislation; “Both of these contain some nasty surprises.”

The full memo is based on draft legislation and may be subject to change by Parliament, but it does not appear to contain anything that would prevent “immigration that has already begun” and persuade long-term foreign residents to remain in the UK. Mr. Brodrick claimed.

He continued: “The Inheritance Tax consequences of long-term residence will be sufficient to deter many people from remaining resident for more than 10 years.

“Will the regime for ‘newcomers’ be attractive enough to fill the void left by departing non-doms?”

“The new regime will allow people coming to the UK after at least 10 years of residence outside the UK to claim exemption from tax on their foreign income and gains for up to 4 consecutive years but unfortunately I think this is not enough to encourage people to stay in the UK “They want it to bring wealth to the Kingdom or to grow roots deep enough to stay here and invest for the long term.”

Speaking yesterday, Ms Reeves said: “I’ve always said that if you make Britain your home, you have to pay your tax here.

“So today I can confirm that we will abolish the non-dom tax regime and remove the outdated concept of domicile from the tax system from April 2025.”

Akshata Murty, former Prime Minister’s wife Rishi AltarHe was embroiled in controversy last year focusing on his non-dom status after it was revealed that he had legally avoided paying UK tax on foreign income, including dividends from his father’s shares in his Indian company Infosys.

This arrangement was seen by critics as conflicting with Mr Sunak’s political role and the public’s tax burden, especially at a time of economic distress.

Ms Murty ultimately chose to give up her non-dom status and agreed to pay UK tax on her global income to quell public criticism.