Wealthy people leaving the UK in part driven by the government’s pledge to abolish the “non-dom” regime is hurting philanthropic funding for the already thinly spread arts sector, institutions and charities have warned. 

Caroline Douglas, director of the Contemporary Art Society, said donations it receives would fall by “hundreds of thousands” of pounds after a “handful” of non-domiciled backers said they would relocate because of proposed tax changes at the Budget. 

The loss of funds would be “a big deal”, Douglas said after a CAS breakfast at the Frieze London contemporary art fair this week. The CAS, which donates artworks to public museums and galleries using money raised from collectors, gave 165 works worth ￡990,000 to 37 collections in the 2023-24 financial year.