The UK government has backtracked on proposed legislation that would have required non-domestic residents to disclose the assets they hold in offshore trusts.

The government's original proposals were contained in draft legislation and set to form part of its next budget. The plans led wealthy individuals to react in horror to the prospect of disclosing their private affairs to a public body. Disclosures to the Treasury would have left the wealthy wide open to tax demands on overseas assets in their trusts including retrospective gains.