The government is to clamp down on the artificial use of dual contracts by non-domiciled individuals.

Announcing the action during the Autumn Statement, among a package of anti-avoidance measures, chancellor George Osborne said: 'We will end the abuse of dual contracts.'

The Treasury has now indicated that government will take legislative measures to prevent a small number of high-earning, non-domiciled individuals from avoiding tax through the artificial division of the duties of employment between the UK and overseas.

As of April 2014, UK tax will be levied on the full employment income where a comparable level of tax is not payable overseas on the overseas contract.

Further details will be announced in Finance Bill 2014.