"Combined with the intention to abolish the remittance basis of taxation for long term residents will determine for many whether they wish to remain in the UK.
"What I suspect will happened is that non-doms presently UK resident will undertake residence planning, to ensure they are not UK resident under the statutory residence test.”
Overall, Reeves stuck to her pledge not to raise taxes on working people but it was business owners that will feel the brunt of the burden.
Toby Tallon, tax partner at Evelyn Partners, says: "Rachel Reeves actively courted the business community well in advance of the election. However, since the election business owners have been on a rollercoaster of uncertainty in the run-up to the Budget with an array of tax rises suggested by or leaked to the press.
"They are today feeling the pain given the significant changes confirmed to CGT, IHT and employers’ NIC contributions.
"These tax changes will leave many business owners questioning whether they should invest their time, energy, risk and money in starting and growing businesses.
"Many will face difficult dilemmas about whether it is worth taking on more staff, or indeed retaining the ones they currently have given that costs of employment will rise."
carmen.reichman@ft.com
