Britain’s opposition Labour Party has pledged to end tax rules that allow wealthy individuals to legally reduce the amount of tax they pay on money earned overseas if they come to power.
Labour Party leader Ed Miliband in a speech at the University of Warwick said: "There are people who live here in Britain like you and me, work here in Britain like you and me, are permanently settled here in Britain, like you and me, but aren’t required to pay taxes like you and me.
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"Why should there be one rule for some and another for everybody else? It is not fair, it is not just, it holds Britain back. We will stop it.
"We will replace it with a clear principle: Anyone permanently resident in the UK will pay tax in the same way", he added.
The change will affect about 116,000 people residing in Britain but are not required to pay tax on income earned abroad, unless they bring the money into the country, under the non-domicile tax rules.
The nom-dom system dates back to the late 18th century, which were introduced to protect citizens with assets in overseas colonies from income taxes introduced to fund an expected war with the French Emperor Napoleon Bonaparte.
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By GlobalDataMiliband said: "There is no bigger symbol of this failure to expect people right to the top to play by fair rules than the failure to deal with tax avoidance."
