A quarter of non-domiciled individuals plan to leave the

UK because of changes to tax law, according to a new survey.

Research by KPMG has found that more than 90 per cent of non-doms believe measures included in the Finance Act 2008 will damage the

UK's competitiveness and 25 per cent are considering moving elsewhere because of it.

In a survey of 80 non-doms, drawn partly from KPMG's own clients, almost a quarter said that they were planning to leave in the next two years as a result of the changes. And as many again said that they would wait to see if the rules were reversed then review their position.

Carolyn Steppler, associate partner in KPMG's private client advisory team, warned that the recession might see even more non-doms leave the country for locations which offer them a tax-free lifestyle.

"If they choose to set up their own businesses, might they decide to do so outside the UK given that any money they bring in to invest in such a venture potentially faces a 40 per cent tax on entering the UK?" she said in a statement.

The

UK should ensure it has an attractive fiscal regime to ensure people want to do business here, Ms Steppler added.

KPMG provides professional services including audit, tax, financial and risk advisory. In the UK KPMG has over 10,000 partners and staff working in 22 offices.