Non-domiciled residents in the UK will potentially be liable to pay tax on assets bought abroad as well as on their income under new rules that may reduce the attraction of the UK as a destination for financial professionals.

A tax on assets will mean that items such as watches, paintings, and furniture bought abroad with offshore income and brought back to the UK will be subject to tax on top of any duty levied. The tax will be introduced at the beginning of the next fiscal year in April.