Foreign Investors for Britain CEO Leslie Macleod-Miller (pictured) is spearheading lobbying efforts ahead of party conference season, as speculation grows that the Government may soften its stance on tax rules for non-doms.

The campaign comes as the prime London market bears the brunt of non-dom departures. Knight Frank’s latest figures reveal a 7% fall in top-end sales, a 13% drop in buyer numbers over six months and a 2.2% annual decline in average prices.

40% IHT

Under Labour’s changes to the non-dom regime, overseas investors face a four-year residence limit and 40% inheritance tax on global holdings.

Foreign Investors for Britain, which represents overseas investors ‘passionate about remaining in the UK’, wants ministers to modify the inheritance tax provisions that apply to worldwide assets. It is also concerned about potential wealth tax measures in the autumn budget, which it believes could also ‘spook’ investors.

Macleod-Miller has said in Knight Frank’s Intelligence Talks podcast that overseas investors will be watching political events unfold over the next few months with particular scrutiny, and if the Government does not modify the rules, the continued capital flight will damage the UK’s finances.

Those with the broadest shoulders normally also have the longest legs – and they are highly mobile.”

He adds: “Those with the broadest shoulders normally also have the longest legs, and they are highly mobile.” And the Office for Budget Responsibility has warned that migration represents ‘a significant behavioural response for non-domiciled taxpayers.’

The lobbying group is instead promoting an Italian-style flat tax system where investors pay an annual sum to stay in the UK.

Macleod-Miller is also pressing Chancellor Rachel Reeves to rule out a wealth tax in her upcoming Autumn budget. “We are urging the Chancellor to confirm there will not be a wealth tax. So far, she has refrained from doing so, but that is a dangerous thing.”

He points to failed wealth tax experiments in France, which lost 12,000 millionaires between 2000 and 2016.

The lobbyist also says that there are reasons to be optimistic, as there are common interests on both sides of the debate – overseas investors are prepared to pay more tax and, he assumes, the Government would be happy to collect more, given its financial predicament.