A partial climbdown on the new "non-dom" tax regime concerning advisers was signalled yesterday by the Treasury in a move designed to stop parts of the private banking industry relocating offshore, writes Vanessa Houlder .

In an amendment to the finance bill, the Treasury proposed an exemption for fees paid by non-doms on investment management services relating to overseas assets. The changes were welcomed by British Bankers' Association, which had warned the Treasury that UK-based advisers would be at a disadvantage compared with their overseas rivals.