Lawyers are warning that UK Chancellor Alistair Darling's proposed tightening of non-domicile residence rules could trigger the departure of wealthy individuals from the country.

Richard Jordan, a private client partner at law firm Stevens & Bolton, is concerned about the way the UK Treasury wants to stop the avoidance of tax through offshore trust structures. He said: "At present, non-dom residents use trusts to own UK property and other investments. This enables them to avoid tax and the proposed changes suggest they will have to take precautions."