Reeves considers softening inheritance tax changes amid non-dom backlash

There have been reports of an ‘exodus’ of wealthy non-doms from the UK, though these have been questioned by some analysts. Photograph: RichardBakerStreetPhotography/Alamy

Rachel Reeves is considering caving in to City lobbying and softening changes to inheritance tax that affect wealthy individuals who would previously have been “non-doms”, reports suggest.

In her autumn budget, the chancellor confirmed that she would scrap the non-dom tax status, which allowed wealthy individuals with connections abroad to avoid paying full UK tax on their overseas earnings.