The U.K. is to soften some planned changes to its controversial non-dom tax rule following concerns of a millionaire exodus, the Treasury has confirmed.

Plans to abolish non-dom status will be amended to allow a more generous phase out of tax benefits, Chancellor Rachel Reeves has announced. Reeves told an audience at the World Economic Forum in Davos that changes would be made to upcoming legislation to increase the generosity of a facility to help non-doms repatriate their funds to the UK.

The UK government plans to amend its non-domiciled (“non-dom”) tax regime in response to concerns over an exodus of wealthy individuals, Treasury officials have confirmed. These changes aim to encourage non-doms to invest and spend more in the UK while addressing critiques of the longstanding tax rules.

The chancellor is to amend some of the changes to tax rules for non-domiciled individuals announced in October’s Budget