The Treasury has allayed fears that advisers could be hit by changes to non-dom legislation by promising a tax exemption on fees paid by offshore clients.
Last week’s International Money Marketing revealed concern from tax experts and industry groups that fees to advisers from offshore clients would count as remittance to the UK, meaning the client would face tax on the fee unless they paid the £30,000 charge to retain the remittance basis.
The experts warned that some financial services firms such as advisers with a big number of offshore clients may have had to move parts of their businesses offshore to remain competitive.
But a spokesman for the Treasury says amendments to the Finance Bill will ensure that advice is eligible for a tax exemption.
He says: “Some of the clau-ses could have had a consequence in the way they define services so that financial advice on the management of offshore assets could be treated as a remittance for tax purp-oses. We are reassuring that it was never the intention that it would have that effect.”