More amplification on the taxation of UK non-doms is now on the way, according to Keith Johnston, head of public affairs at the Society of Trust and Estate Practitioners.

“We had a meeting with HMRC yesterday and they agreed with us that more amplification on the details behind the proposals was required. We expect to see more from the authority in the next week,” he told WealthBriefing.

“We are even hopeful that a deferral until 2009 is possible so that all the issues that we have been bringing to attention can be ironed out,” he said.

“The only way to achieve the certainty which the Revenue and taxpayers are both seeking is to postpone the introduction of the new rules so that they take effect from April 2009,” echoed John Riches, STEP deputy chairman.

This week has been a roller-coaster ride for UK resident non-doms, their advisors as well as observers and analysts.

On Tuesday, the UK’s tax authority, HM Revenue & Customs issued an open letter in an attempt to assuage their fears which was met first by triumph and then by weary resignation by those lobbyists and advisors who had been working tirelessly to show the government the error of its ways on this politically-driven issue.

In its clarification, HMRC said that non-doms using the remittance basis will not be required to make any additional disclosures about their income and gains arising abroad. So long as they declare their remittances to the UK and pay UK tax on them, they will not be required to disclose information on the source of the remittances.

The authority also made clear that it would not look retrospectively at trusts and that the tax changes will not apply to gains accrued or realised prior to the effective date.

Money brought into the UK to pay the proposed £30,000 flat rate charge will not itself be taxable says the UK tax authority, art works brought into the UK for public display will not incur a charge to tax, and discussions will continue with US authorities on how the £30,000 charge can become creditable against US tax, an area of concern for many US nationals and their advisors.

But this first stab at clarification did not appease the campaigners.

“The Government needs to rethink the proposal to tax the UK gains of offshore trusts in the hands of settlors that could lead to a significant flight of capital from the UK. This could particularly damage the property and art markets as investors look to relocate investments and transactions offshore.

“Further changes are needed to convince international business people that the UK should retain its crown as the premier jurisdiction for themselves, their families, homes and business interests,” said Stuart Skeffington, partner in the wealth planning team at international law firm Withers.

His words were echoed by John Nugent of accountancy firm PKF who said: "The assurances respond to some of the more dramatic aspects of the recent media coverage but other than perhaps offering not to tax old gains it does not promise anything on the fundamental problems regarding the proposed extension to certain rules on offshore structures that are the basis for the deepest concern amongst clients. It is that legislation and not the £30,000 fee that will lead to an exodus of the extremely wealthy and/or disinvestment from the UK."