Rachel Reeves has signaled she will ease Labour's crackdown on non-doms amid unrest over the exodus of millionaires from Britain.
The chancellor told a side event at the World Economic Forum in Davos that she was “listening” to the concerns.
An amendment to the budget law is expected to be tabled. It is thought the proposed change is related to the temporary repatriation facility, which will allow registered individuals to bring money into Britain.
“We have listened to the concerns expressed by the nondom community,” Ms. Reeves told a Wall Street Journal event.
A Treasury source said: 'We are always interested in ideas to make our tax regime more attractive to talented entrepreneurs and business leaders from around the world to help create jobs and prosperity in Britain.'
Sources stressed that the amendment would not change the amount of money raised or the main intentions of the overhaul.
Chancellor Rachel Reeves, who is attending the World Economic Forum in Davos, Switzerland this week, was blamed for allowing millionaires to abandon Britain
Figures from New World Wealth, a global analytics firm, show that 10,800 liquid millionaires – who own more than $1 million in liquid assets – left the UK by 2024.
Analysis of the research by the Adam Smith Institute found that each of these millionaires would have paid at least £393,957 in income tax.
This equates to the same income tax as 49 average taxpayers – each with an average income tax bill of £8,048, the think tank said.
It means – as a result of the exodus of millionaires – that the Treasury now faces a shortfall in income tax revenue equivalent to the income tax paid to 528,000 average taxpayers, the analysis said.
The push on non-doms and other tax increases in the budget are to blame for millionaires abandoning Britain.
The Adam Smith Institute said Britain had an “increasingly hostile attitude” to wealth creation and warned that average families could face even higher tax bills to fund public services.
The Tories claimed that entrepreneurs and businesses were fleeing Britain 'in droves' under Labour, who they accused of overseeing a 'tepid bath of decline'.
Previously it has been found that the top 1 per cent of income tax payers generate 29.1 per cent of UK income tax, which is the Treasury's largest source of tax revenue.
According to New World Wealth research, conducted with investment migration consultants Henley & Partners, only China will lose more millionaires than Britain by 2024.
Compared to the net 10,800 millionaires Britain lost last year, the number would be 4,200 in 2023, they found.
Britain also lost 16,500 millionaires to migration between 2017 and 2023, including Brexit and the Covid pandemic, the research said.
Responding to the Adam Smith Institute's analysis, Tory MP Andrew Griffith, the shadow business and trade secretary, said: 'Our entrepreneurs and businesses are fleeing the tax raid of this socialist government in droves.
'This research shows that Rachel's Marxist math has put the economy in real danger of drowning in Labour's tepid bath of decline.
“If she doesn't change course, every taxpayer will be soaked.”
Maxwell Marlow, research director at the Adam Smith Institute, said: 'The rate at which millionaires are leaving the country is alarming.
'This will have serious consequences for our wider economy and the public services their taxes fund.
“And if the Treasury Department loses money from these departing individuals, they may decide they need to tax the average taxpayer even more than they already do.
'Our analysis only measured the minimum amount of income these millionaires were likely to pay – and did not take into account the other taxes they pay into the treasury at very high rates.
“So the budget gap caused by the departure of these wealthy individuals is likely to be much larger.
'Our findings underline the urgent need to attract more millionaires to Britain, for example by introducing an Italian-style flat rate or cutting anti-business taxes.'
