Financial Times FT.com

UK Treasury in 'non-dom' retreat as it dilutes plan for tax crackdown

By Jean Eaglesham in London

Published: February 13 2008 02:00 | Last updated: February 13 2008 02:00

Gordon Brown's Labour government was yesterday forced into a second Budget retreat in the space of a month when it confirmed that it would be watering down plans for a clampdown on wealthy foreigners living in Britain.

The proposed crackdown on so-called "non-domiciled" residents - or non-doms - was designed to raise money from often very wealthy individuals who have lived in the UK for years but avoid paying any personal taxes.

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