Prime Minister Jeremy Hunt announced in last Wednesday’s budget that the non-dom position would be abolished.
Downing Street said the Prime Minister did not take part in the policy consultation on the changes to avoid a potential conflict of interest and only considered the policy once a final decision had been made.
Under current non-Dom rules, foreigners lose their non-Dom status after 15 years and must then pay inheritance tax on assets worldwide.
In the UK, inheritance tax is levied at 40% on inheritances exceeding £325,000, or £1 million if the couple passes their main assets to their children.
The Telegraph has been campaigning for the government to scrap the levy, but Mr Hunt left it in the Budget.
The Government has announced it will consult on how to replace inheritance tax rules for non-residents, with plans to move to a residence-based system.
Currently, UK residents pay inheritance tax, but if residency status is abolished, the government wants to apply the tax to UK residents who have lived in the UK for more than 10 years.
The rules are still subject to consultation and it remains to be seen whether the government will address loopholes in double tax treaties.
A government spokesperson said: “We have 10 long-standing double taxation agreements covering IHT with other countries including France, Italy, Sweden and India. Existing treaties are not affected.”
