While new arrivals will pay no additional tax for the first four years, after this period, they will be taxed the same as other UK residents. Hunt said transitional arrangements will be put in place for those under the current regime, including a two-year transition period.

Hunt said the change in regulation will bring in £2.7bn each year.

Non-domiciled tax currently allows some residents to claim their permanent home abroad, which excludes them from paying tax on money made outside the UK while still living in the country. ‘Non-doms’ can also invest money offshore, which remains untaxed in the UK. This can be done on a remittance basis, which can be claimed on income over £2,000 but can cause a loss of tax-free allowances for income tax and capital gains tax.

After non-doms have been in the UK for seven of the past nine tax years, they will be charged £30,000 annually for this remittance and £60,000 after being in the UK for 12 of the past 14 tax years.

A study by the London School of Economics in 2022 showed a complete elimination of tax loop on this income would bring over £3.2bn in tax revenue each year. On average, it saves ‘non-doms’ over £125,000 through income and capital gains tax each year, according to the study, resulting in an average £420,000 left unreported. In addition, 55% of unreported income and gains belong to those who have lived in the UK for less than five years.

One of the main concerns of ousting the regulation is non-doms leaving the UK without the rule in place. The London School of Economics research estimated that .3%, or less than 100 people, would leave the country because of this change.

David Burgherr, research officer at London School of Economics’ International Inequalities Institute, said one in 16 non-doms report no income in the UK, and averaged earning £450,000 abroad.

Claire Trott, divisional director for retirement and holistic planning at St James’s Place, said: “The scrapping of the non-dom status is estimated to bring over £2.7bn of extra tax revenue which will be used to fund the other tax cuts announced in the Budget.

“Moreover, this was one of Labour’s proposed changes so the Conservatives taking this “tax windfall” from Labour’s calculations will certainly hamper their proposed spending. If Labour do win the next election, they will have to consider what to do about this budget hole the Conservatives will have left them. They will have to choose whether to change where the saving is spent, or to just try and fulfil their spending plans in other ways.”

Sophie Dowretzsky, partner at law firm Charles Russell Speechlys, said she found the abandonment of the regime “slightly surprising” because of Hunt’s previous attitude towards scaling it back.

“Whilst he has promised an alternative system that is fairer and competitive, an absolutely crucial aspect of any changes is to ensure that they are clear, bring stability and create an attractive regime for wealth creators considering a move to the UK,” Dowretzsky said.

“The details of the new proposed regime are yet to be clear, but reducing the time period for which there are tax advantages for new arrivals to 4 years seems uncompetitive. On the upside it is good news that it seems the new rules will encourage inward investment of offshore income and gains which currently cannot be easily and tax efficiently invested onshore. A key question is how transitional arrangements will work.”

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While 2022 offered a full-year dividend of 52.78 pence per share, this year will result in 23.83 pence per share, a 54.8% decrease. The board also announced that in the future, annual distributions will be 50% of the full year underlying cash result, set at 18 pence per share for the next three years.

The £426m pre-tax provision is in response to a “marked increase” in client complaints regarding their ongoing service. SJP started an assessment into the need for refunds due to this ongoing service, and found the “evidence of ongoing client servicing was less complete in the years preceding investment into [its] Salesforce CRM system in 2021″. The findings resulted in the company upping its provisions for refunds.

In 2023, SJP announced fee restructures that will be put in place in the second half of 2025, which faced criticism within the industry, primarily for the amount of time it would take to put the system in place. The announcement followed the FCA’s consumer duty regulation which came into play on 31 July.

See also: St James’s Place net inflows halve as Jefferies lists stock as ‘buy’

A report from Citi highlighted the drop in its capital return policy: “H2’23 underlying cash came in 8% below consensus driven by the costs associated with an increase in client complaints. The post-tax result was also materially impacted by a provision for further potential client refunds linked to historic servicing levels.

“Although the dividend cut is not completely unexpected, it has gone further than we had thought and, when combined with the uncertainty surrounding the costs associated with client servicing complaints, we expect the shares to face headwinds today.”

SJP’s post-tax underlying cash result was £392.4m, down from £410.1m in 2022, which the company noted included a higher corporation tax rate for the year. For the year, SJP had net inflows of £5.1bn compared to 2022’s £9.8bn.

JP Morgan Cazenove wrote in an analysis report: “The size of the provision, paired with the downgrade in the capital return policy, will result in another major negative share price reaction, in our view.

“We expect that management will have to address a number of questions, including the one-off nature of the provision, additional regulatory risks, and the implications for future customer acquisition and relationship with the Partners.”

SJP CEO Mark FitzPatrick added in the results: “Overall, 2023 was a difficult year for SJP but we’ve faced into our challenges. We’ve raised our standards around both the delivery and evidencing of ongoing client servicing and we’ve announced changes across our business, including our charges structure, so that we’re in good shape for the future.”

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Todd spent over eight years at Investec analysing long-only, alternatives, and passive strategies. Previously, he was an associate director of fund research at Coutts for almost five years where he made the move from portfolio management to fund research.

In his new role, Todd will be responsible for researching funds in the alternative investment universe, including hedge funds for private markets and infrastructure. He will report to head of manager research Kristian Cassar, who is the lead of one of three teams under the ‘extended research hub’. The hub also holds an operational due diligence team and responsible investing team.

See also: Quilter adds Juniper Financial Planning to network

“Alternatives have become a crucial component within portfolio construction and as a result we want to ensure we have dedicated coverage from experts within the field,” Cassar said.

“The alternatives universe is vast and covers a number of sectors, so we wanted to make it easier for our portfolio managers to search deeper and wider for best-in-class funds and trusts to add to their multi-asset portfolios. Adrian brings valuable experience within alternatives, which will be a real benefit for the team and advisers we work with.”

In the final quarter of last year, Quilter reported net flows of £56m and a total assets under management and administration increase of 5% to £106.7bn.

On his move, Todd said: “Alternatives can be complex and challenging but also provide scope for differentiation and long-term outperformance in multi-asset portfolios, so I am looking forward to getting stuck in and providing ideas to the team for potential inclusion within our portfolios.”

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For the fiscal year to this point, Canaccord’s UK offering has earned £181.1m in revenue, an increase of 19% from last year. Client assets, however, have increased just 1.4% year-over-year. Pre-tax profit margin for the year has slightly dropped to 24.5%, down 40 basis points.

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The company reached a net income of £15.1m before taxes for the third quarter and £44.3m for combined quarters, up 5.3% and 17.4% from the previous year, respectively.

David Esfandi (pictured), CEO of Canaccord Genuity Wealth Management in the UK & Crown Dependencies, said: “We delivered an excellent quarterly result, and we are comfortably on track to deliver record revenue and net income for our full fiscal year, a testament to our approach to integrated wealth management.

“Our progress reflects our leading position as a truly holistic wealth manager and the pace at which we are progressing organic growth initiatives and opportunities to modernise. We also continue to demonstrate our ability to identify and incorporate like-minded businesses and we look forward to finalising our acquisition of Intelligent Capital in the coming months.”

Canaccord Genuity agreed to an acquisition of Scottish financial planning business Intelligent Capital in November of 2023, which holds £220m in client assets. The deal is expected to finalise in March.

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The strategies, including the BNY Mellon Global Dynamic Bond, BNY Mellon Sustainable Global Dynamic Bond and BNY Mellon Global Dynamic Bond Income fund, were placed under suspension in June 2023. Ella Hoxha, formerly at Pictet, took over as fund manager in December of last year.

Square Mile stated that after meeting with Hoxha and discussing the changes to the portfolios, its team believes “it will take time to fully appreciate the impact of those changes”. In addition, Square Mile found the medium-term returns “not in line with expectations”, resulting in the funds’ removals.

Jupiter Value funds, including the AAA-rated Jupiter UK Special Situations fund and A-rated Jupiter Global Value Equity fund, were suspended after Ben Whitmore and Dermot Murphy announced their departure for July 2024 to create their own investment boutique. While JO Hambro Capital Management’s Alex Savvides will take on the UK equities portion of the funds, there is still discussion over the global equity assets and whether they will transfer with Whitmore, Square Mile said.

See also: RLAM and Artemis funds added to Square Mile academy

Despite the three funds dropped from BNY Mellon, the BNY Mellon Futurelegacy fund range gained a responsible Positive Prospect rating. The group of five funds are managed by Newton Investment Management and launched in February of last year.

“In what is an under-represented area of the market, Square Mile believes this range has all the attributes necessary to provide competitive long-term returns while following the team’s sustainable investment approach,” Square Mile stated.

The Brown Advisory Global Leaders fund was awarded an AA rating, managed by Mick Dillon and Bertie Thomson. The fund, launched in 2015, comprises 30 to 40 holdings which Square Mile claims is “differentiated from its peers and a very solid offering for long-term investors”.

Aikya Global Emerging Markets gained a Responsible A rating while Rathbone Greenbank Multi-Asset portfolios obtained a responsible recommended rating.

Three strategies, the CT UK Social Bond fund, Artemis SmartGARP Global Emerging Markets Equity fund, and WS Montanaro UK Income fund retained their ratings despite changes in management.

In total, Square Mile conducted 52 interviews with 31 asset management groups in the month of January.

This article was written for our sister title Portfolio Adviser