Brace yourself for the UK's big hitters

Ireland should prepare itself for a flood of elite foreign bankers if the UK government goes ahead with non-dom tax plans.

The government's controversial plans to crack down on foreigners who work in the UK, charging them 30k (€39k) a year after seven years' residency to keep their money out of the UK's income tax net, could prove costly for the City.

A study by the London Investment Banking Association reckons up to 10,000 investment bankers could flee the Square Mile.

Meanwhile, the Irish financial ministry has made it clear that it will continue to offer tax breaks for non-doms. The Department of Enterprise, Trade and Employment announced: "It is policy to continuously market Ireland as an attractive base for investment in industry."

John Whiting, tax partner at PricewaterhouseCoopers, says: "If we're talking entrepreneurs, their first ports of call are likely to be Switzerland or Monaco, but your big-salary City types are going to be looking to move to another financial centre, and Ireland is definitely on that list."

Mark Yeandle, author of the Global Financial Centres Index, says Dublin is already being touted as a likely place to attract London's financial elite: "It's going to move up the rankings because more influential people are moving there. High-flying people in financial services could well relocate there for tax reasons. You've already got a good operational base there and it's going to strengthen Dublin's status as a global financial centre."

Whiting reckons Ireland has no shortage of experience in luring financial firms to its shores: "The tax regime has historically been a bit of a shop window for Ireland. It offered cheap rent and tax in Dublin docks' financial centre; that eventually got squeezed out and so they cut corporation tax to a seductive 12.5%. There's no doubt it will be accommodating to City professionals looking to move."

And Sean O'Murchu, head of direct business at Bank of Ireland Private Banking, reckons the Emerald Isle would welcome the extra skills base: "Ireland's success as a small open economy has developed from the influx of foreign talent and capital. Ireland already has an advanced international financial services sector. Any increase arising from the arrival of non-doms will certainly boost skilled talent pool."